Difficulty: Medium

Average Score: 50%

A seller has entered into an exclusive agency agreement IF:

Rationale

Only one broker and the owner has the right to sell the property.

In an exclusive agency agreement, the seller grants a single broker the exclusive right to represent them in the sale of their property, while still retaining the right to sell the property independently without incurring a commission.

A (any broker can sell the property and earn a commission) YOUR ANSWER

This statement describes a general listing agreement, not an exclusive agency agreement. In an exclusive agency agreement, only the designated broker has the exclusive right to represent the seller, while other brokers do not have the authority to sell the property.

B (the commission is divided among several brokers even though one broker sold the property) YOUR ANSWER

This option implies a multiple broker arrangement, which contradicts the principle of exclusivity inherent in an exclusive agency agreement. In this type of agreement, only one broker is authorized to represent the seller, and the commission would not be divided among multiple brokers unless stipulated otherwise.

C (the owner must pay a commission regardless of who sells the property) YOUR ANSWER

This statement reflects the terms of an exclusive right-to-sell agreement rather than an exclusive agency agreement. In an exclusive agency agreement, the owner is not obligated to pay a commission if they sell the property themselves, which is a key distinction of this arrangement.

Conclusion

An exclusive agency agreement allows the seller to work with one broker while retaining the right to sell the property independently without owing a commission. This arrangement is distinct from other types of agreements, such as exclusive right-to-sell, where commissions are guaranteed regardless of who sells the property. Understanding these nuances is vital for both sellers and brokers in real estate transactions.

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