A client wants to give a broker a listing to sell a house, but wants to retain the right to sell it to a sibling without paying a commission. What is the broker's most appropriate course of action?
The broker should have the buyer execute an exclusive right-to-sell listing.
An exclusive right-to-sell listing provides the broker with the assurance of earning a commission for any sale, regardless of who the buyer is, while also allowing the client to retain the right to sell to a sibling without the obligation to pay a commission in that specific case.
This option is not advisable as it places the broker in a passive role, lacking any formal agreement with the client. Without a listing agreement, the broker may miss the opportunity to secure a commission if the client decides to sell to someone other than their sibling.
This choice implies a conditional approach that may leave the broker without a formal agreement initially. An exclusive right-to-sell listing should be established upfront to ensure clarity on commission rights, rather than waiting for potential disagreements.
An exclusive agency listing allows the client to sell the property themselves without paying a commission if they find a buyer, which contradicts the client's desire to retain the right to sell to a sibling without commission. This agreement would not adequately protect the broker's interests.
An open listing does not guarantee the broker any commission, as it allows multiple brokers to work on the same property. This option doesn't align with the client's intent to ensure a commission for the broker while retaining certain selling rights.
An exclusive right-to-sell listing is the most effective approach for the broker to secure commission rights while accommodating the client's desire to sell to a sibling without incurring additional costs. This type of listing offers the broker protection and clarity in their professional relationship, ensuring both parties understand their rights and responsibilities.
Related Questions
View allA buyer wants to purchase a home for $400,000 with a 20% down payment....
A person who was previously found guilty of a rule violation is later...
Written offers to purchase real estate in New Jersey must be presented...
An owner lists a property with a broker through an associate broker. T...
A contract is terminated if
Related Quizzes
View allAlabama Property and Casualty License Practice Exam
California Real Estate Practice Final Exam Answers
PSI National Real Estate License Exam Prep
Colorado State Real Estate License Exam
Illinois Real Estate Exam Prep Online
Free Illinois Real Estate Exam Practice Test
Illinois Real Estate Broker Exam Prep
Illinois Real Estate Exam Study Guide PDF
Illinois National Real Estate Exam
Illinois Real Estate State Exam Questions
- ✓ 500+ Practice Questions
- ✓ Detailed Explanations
- ✓ Progress Analytics
- ✓ Exam Simulations