Difficulty: Hard

Average Score: 20%

A seller has entered into an exclusive agency agreement IF

Rationale

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

In an exclusive agency agreement, the seller retains the right to sell the property themselves while also granting one broker the exclusive right to represent them. This means that the broker is the sole agent, but the seller can sell the property without paying a commission if they do so.

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

This statement describes an open listing agreement rather than an exclusive agency agreement. In an exclusive agency agreement, only one broker is authorized to sell the property, contrasting with an open listing where any broker can sell and earn a commission.

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

This scenario would apply to a multiple listing service (MLS) arrangement or a cooperative brokerage agreement, not an exclusive agency agreement. In an exclusive agency agreement, only the designated broker earns the commission unless the owner sells independently.

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, where the owner is obligated to pay the broker a commission regardless of who sells the property. In contrast, an exclusive agency agreement allows the owner to avoid paying a commission if they sell the property themselves.

Conclusion

An exclusive agency agreement allows one broker to represent the seller while giving the seller the right to sell the property independently without incurring a commission. This unique arrangement distinguishes it from other listing agreements, where either multiple brokers are involved or the owner is always required to pay a commission, thereby providing flexibility for the seller.

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