Texas Real Estate State Practice Exam

In an Exclusive Right to Sell agreement, who receives the commission regardless of who sells the property?

1. Broker exclusive agent but owner can sell

2. Agent acts without permission

3. Bind only one party example an option

4. Broker exclusive agent receives commission no matter who sells the property

The correct answer is: Broker exclusive agent receives commission no matter who sells the property

In an Exclusive Right to Sell agreement, the broker, as the exclusive agent, is entitled to receive the agreed-upon commission regardless of who ultimately sells the property. This means that even if the homeowner independently finds a buyer without the broker's assistance, the broker is still entitled to the commission because the agreement provided them with the exclusive rights to market and sell the property. This type of agreement is particularly beneficial for the broker, as it assures them of compensation for their efforts in marketing the property and performing other responsibilities associated with the sale. It differentiates from other types of agreements, like an open listing, where multiple brokers can compete for the sale and only the one who finds a buyer gets the commission. In the case of an Exclusive Right to Sell, the broker's commission is secured, promoting a collaborative effort to sell the property effectively. The other options fail to capture the essence of how commissions work under this specific type of listing agreement, emphasizing the broker’s guaranteed earnings regardless of the seller's actions.