New York State Real Estate Salesperson Licensing Exam

What type of listing agreement allows a broker to earn a commission regardless of who sells the property?

1. Exclusive Agency

2. Open Listing

3. Exclusive Right to Sell

4. Net Listing

The correct answer is: Exclusive Right to Sell

The type of listing agreement that allows a broker to earn a commission regardless of who sells the property is the Exclusive Right to Sell agreement. This type of agreement guarantees that the broker will receive a commission when the property sells, no matter if the broker, the seller, or another agent brings in the buyer. This creates a strong incentive for the broker to actively market and sell the property since they are assured of compensation for their efforts. In an Exclusive Agency agreement, the broker retains the right to earn a commission, but the seller can also sell the property independently without incurring a commission if they find a buyer themselves. An Open Listing allows multiple brokers to work to sell the same property, meaning only the broker who actually sells the property receives a commission, potentially leading to no guarantee of payment for any specific broker. A Net Listing, which is generally discouraged due to legal and ethical considerations, involves agreeing on a set amount the seller will receive, with the broker keeping anything beyond that as commission. However, it does not inherently provide the same level of assurance of commission that an Exclusive Right to Sell agreement does.