Check Your Understanding Answers
- What is an important thing to remember about the enforceability of listing agreements?
They must be in writing to be enforceable
- What is the major difference between an exclusive right to sell listing and an exclusive agency listing?
With exclusive right to sell, the broker has the exclusive right to market the property and receive a commission regardless of who procures the buyer. With exclusive agency, the owner retains the right to find a buyer and sell the property and owe the exclusive broker no commission.
- Describe an open listing.
An open listing is a non-exclusive listing that allows a seller to engage a number of different brokers to sell the property. The broker who brings the buyer gets the commission. If the owner sells the property, no commission is owed to any broker.
- How does a net listing create a conflict of interest for a broker?
It violates the broker’s fiduciary responsibility of putting the client’s interests above his or her own.
