Which statement best differentiates exclusive right to sell from exclusive agency listing?

Which statement best differentiates exclusive right to sell from exclusive agency listing?

• A. Exclusive right to sell pays the listing broker a commission only if the broker brings a buyer.
• B. Exclusive right to sell pays a commission regardless of who sells.
• C. Exclusive agency allows the owner to sell themselves without paying a commission.
• D. Exclusive agency prohibits the owner from selling themselves.

Answer: (C)

Understanding listing agreements and who owes a commission is the key idea here. Exclusive agency lets the owner sell the property themselves without owing a commission to the listing broker, while the broker still earns a commission if the broker (or another broker) finds a buyer. If the owner finds a buyer, no commission is owed; if the broker procures a buyer, the broker earns the commission. This distinction is why the statement about the owner being able to sell without paying a commission best differentiates exclusive agency from exclusive right to sell. In contrast, exclusive right to sell guarantees the broker a commission no matter who finds the buyer, and exclusive agency does not prohibit the owner from selling themselves.

Understanding listing agreements and who owes a commission is the key idea here. Exclusive agency lets the owner sell the property themselves without owing a commission to the listing broker, while the broker still earns a commission if the broker (or another broker) finds a buyer. If the owner finds a buyer, no commission is owed; if the broker procures a buyer, the broker earns the commission. This distinction is why the statement about the owner being able to sell without paying a commission best differentiates exclusive agency from exclusive right to sell. In contrast, exclusive right to sell guarantees the broker a commission no matter who finds the buyer, and exclusive agency does not prohibit the owner from selling themselves.