SUMMARY: Ch 2: Types of Listing Agreements

Question 1

Open Listing

Answer 1

In an open listing agreement, the seller agrees to pay the agent a commission only if the agent is the person responsible for bringing about the purchase agreement between the buyer and the seller.

The agent must be the procuring cause of the sale. Open listing agreements are rarely used.

Question 2

Procuring Cause

Answer 2

An agent is the procuring cause of a sale if the agent located the buyer and helped negotiate the sale.

Question 3

Exclusive Agency Listin

Answer 3

The seller agrees to pay the agent a commission if anyone other than the seller finds the buyer.

If the agent or any other real estate licensee finds the buyer, the agent is owed a commission.

If the seller locates the buyer, no commission is owed to the agent

Question 4

Exclusive Right to Sell Listing

Answer 4

In an exclusive right to sell listing, the seller agrees to pay the agent a commission regardless of who finds the buyer.

This is the type of listing agreement that is used most often.