Exclusive Right to Sell Listing

### What is an exclusive right to sell listing? - [x] A contract granting a broker the exclusive right to sell the property and earn a commission irrespective of who sells it. - [ ] An agreement where multiple brokers can try to sell a property. - [ ] A type of listing where no brokers are involved. - [ ] A temporary contract for rental properties only. > **Explanation:** An exclusive right to sell listing is a contract that grants a single broker the exclusive right to sell a property and guarantees them a commission if the property is sold during the term, regardless of who sells it. ### In an exclusive right to sell listing, who is entitled to a commission if the property is sold? - [x] The broker named in the listing agreement. - [ ] Any broker who introduces a buyer. - [ ] Only the seller if they sell it themselves. - [ ] The broker and the real estate lawyer jointly. > **Explanation:** The broker named in the listing agreement is entitled to a commission if the property is sold during the term of the agreement, irrespective of who sells it. ### How does an exclusive right to sell listing benefit the property owner? - [ ] It ensures multiple brokers will be competing to sell the property. - [ ] It typically results in paying no commission at all. - [x] It incentivizes the broker to put more effort into selling the property, knowing they will get the commission. - [ ] It allows the property owner to sell without any broker involvement. > **Explanation:** The broker is more motivated to dedicate resources and effort into selling the property since their commission is guaranteed if the property sells during the listing period. ### How is an exclusive agency listing different from an exclusive right to sell listing? - [ ] They are exactly the same in terms of terms and conditions. - [x] In an exclusive agency listing, the owner can sell the property themselves without paying a commission. - [ ] In an exclusive right to sell listing, no commission is due if another broker sells it. - [ ] An exclusive agency listing allows unlimited brokers to attempt to sell the property. > **Explanation:** In an exclusive agency listing, the property owner has the right to sell the property themselves without owing a commission to the broker. ### Which of the following would invalidate an exclusive right to sell listing? - [x] Selling the property after the listing period ends without renewal. - [ ] Marketing and showing the property to prospective buyers. - [ ] The broker negotiating with interested buyers. - [ ] Both the broker and the owner looking for buyers. > **Explanation:** If the property is sold after the listing period has ended, the broker is not entitled to a commission unless the contract is renewed or extended. ### Why is an exclusive right to sell listing commonly used by sellers? - [x] It ensures the broker is highly motivated and dedicated to selling the property. - [ ] It minimizes the commission fee payable by the seller. - [ ] It guarantees multiple brokers working independently on the sale. - [ ] It does not include a commitment period. > **Explanation:** Sellers prefer this type of listing because it ensures the broker is highly motivated to sell the property, as they are guaranteed a commission. ### Can a seller terminate an exclusive right to sell listing before it expires? - [x] Only if the contract includes a cancellation clause or the broker consents. - [ ] Yes, at any time, without any condition. - [ ] No, it is not possible under any circumstances. - [ ] Only if another broker offers to sell the property for a higher commission. > **Explanation:** Termination before the expiry date generally requires a contractual cancellation clause or mutual consent between the seller and the broker. ### What is the primary responsibility of a broker in an exclusive right to sell listing agreement? - [ ] To conduct weekly property maintenance. - [ ] To pay property taxes and insurance. - [x] To market and sell the property within the agreed timeframe. - [ ] To provide property management services after the sale. > **Explanation:** The primary responsibility of a broker in an exclusive right to sell listing is to actively market the property and find a buyer within the agreed-upon timeframe. ### How does the exclusive right to sell listing affect the property owner's sale process? - [x] The owner cooperates with and depends on the broker’s efforts to sell the property. - [ ] The owner can freely engage multiple brokers to sell the property. - [ ] The owner is obligated to pay multiple commissions regardless of who sells the property. - [ ] The owner entirely relinquishes control over the sale process. > **Explanation:** The owner works in cooperation with the broker who is exclusively responsible for marketing and selling the property during the listing period. ### In case the property is sold by another broker during the listing period, who receives the commission? - [x] The original broker listed in the exclusive right to sell listing. - [ ] The broker who found the buyer exclusively. - [ ] The seller retains the entire proceeds without paying any commission. - [ ] No commission is paid to any broker. > **Explanation:** The original broker listed in the exclusive right to sell listing receives the commission even if the property is sold by another broker during the listing period.