Difficulty: Medium

Average Score: 69%

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 property owner grants a single broker the exclusive right to represent them in the sale of the property, while retaining the right to sell the property themselves without owing a commission to the broker if successful.

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 scenario, only one designated broker is authorized to represent the seller, which contradicts the notion of multiple brokers being involved.

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

This choice implies a cooperative selling scenario, which is not applicable to an exclusive agency agreement. Under such an agreement, the commission structure is typically set for the single broker representing the seller, rather than being divided among multiple brokers.

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

This statement aligns with an exclusive right-to-sell agreement, where the owner would owe a commission regardless of who sells the property. However, in an exclusive agency agreement, the owner can sell the property themselves without incurring a commission obligation to the broker.

Conclusion

An exclusive agency agreement allows a single broker to represent the seller while permitting the seller to retain the right to sell independently without paying a commission. This unique structure distinguishes it from other listing agreements, emphasizing the specific rights and obligations of both the broker and the seller in the property selling process.

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