In an Exclusive Agency listing, if the owner sells the property personally, what happens to the broker's commission?

In an Exclusive Agency listing, if the owner sells the property personally, what happens to the broker's commission?

• A. No commission is paid to the broker.
• B. The broker earns a commission equal to a percentage of sale price.
• C. The broker earns a fixed fee regardless of sale.
• D. The broker earns a commission only if buyer is presented by the broker.

Answer: (A)

In an Exclusive Agency listing, the seller has the right to sell the property themselves without owing a commission to the broker. The broker’s commission only comes into play if the broker (or their agent) is the procuring cause of the sale, meaning they introduce and bring the buyer who completes the transaction. Therefore, if the owner handles the sale personally, no commission is due to the broker. This differs from an Exclusive Right to Sell, where the broker earns a commission regardless of who sells the property, and from an Open listing, where commissions go to the broker who actually procures the buyer.

In an Exclusive Agency listing, the seller has the right to sell the property themselves without owing a commission to the broker. The broker’s commission only comes into play if the broker (or their agent) is the procuring cause of the sale, meaning they introduce and bring the buyer who completes the transaction. Therefore, if the owner handles the sale personally, no commission is due to the broker. This differs from an Exclusive Right to Sell, where the broker earns a commission regardless of who sells the property, and from an Open listing, where commissions go to the broker who actually procures the buyer.