Marc is the listing agent for a two-story home. He will earn compensation if any broker, or he himself, procures the buyer. He will NOT earn compensation if the owner brings the buyer. What is this an example of?

Rationale

Marc's situation is an example of an exclusive agency listing.

In an exclusive agency listing, the listing agent earns a commission if a broker or the agent himself brings a buyer, but not if the owner finds the buyer independently. This arrangement incentivizes the agent to market the property actively while allowing the owner some flexibility.

A (exclusive right-to-sell listing) CORRECT

In an exclusive right-to-sell listing, the agent is entitled to a commission regardless of who brings the buyer, including the owner. This option does not align with Marc's situation, as he does not earn compensation if the owner finds the buyer.

B (net listing) YOUR ANSWER

A net listing guarantees the seller a specific amount from the sale, with the agent keeping any amount above that as commission. This type of listing is not relevant to Marc's scenario, where the condition for earning compensation is based on who procures the buyer rather than a set sale price.

C (exclusive agency listing) YOUR ANSWER

Correctly identifies the agreement Marc has in place, where he earns a commission only if he or another broker finds the buyer, but not if the owner does. This type of listing distinguishes itself from the exclusive right-to-sell listing by allowing the owner the option to sell independently without incurring a commission.

D (open listing) YOUR ANSWER

An open listing allows multiple agents to market the property, and the seller pays only the agent who successfully finds a buyer. This arrangement differs from Marc's exclusive agreement, as it lacks the specific condition regarding compensation that he has.

Conclusion

Marc's situation exemplifies an exclusive agency listing, where he earns a commission for procuring a buyer but not if the seller finds one independently. This type of listing balances the interests of both the agent and the owner, promoting active marketing efforts while allowing the owner to retain some control over the sale process.

Marc is the listing agent for a two-story home. He will earn compensation if any broker, or he himself, procures the buyer. He will NOT earn compensation if the owner brings the buyer. What is this an example of?

Marc's situation is an example of an exclusive agency listing.

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