In an Exclusive Agency listing, if the owner sells the property without using the broker, what happens to the broker's commission?

In an Exclusive Agency listing, if the owner sells the property without using the broker, what happens to the broker's commission?

• A. No commission is paid to the broker.
• B. The broker still gets paid a commission.
• C. The commission is negotiated after closing.
• D. The commission is paid by the buyer.

Answer: (A)

Exclusive Agency listing means the seller can keep the right to sell the property themselves without owing a commission, as long as the broker did not procure the sale. The broker earns a commission only if they or their agent were the ones to find a buyer who is ready, willing, and able to purchase. So, if the owner sells the property without using the broker, there is no commission due to the broker. This differs from an Exclusive Right to Sell, where the broker is entitled to a commission regardless of who finds the buyer. The other options would apply only in scenarios where the broker was involved or where the agreement dictates payment differently, not when the owner sells independently.

Exclusive Agency listing means the seller can keep the right to sell the property themselves without owing a commission, as long as the broker did not procure the sale. The broker earns a commission only if they or their agent were the ones to find a buyer who is ready, willing, and able to purchase. So, if the owner sells the property without using the broker, there is no commission due to the broker. This differs from an Exclusive Right to Sell, where the broker is entitled to a commission regardless of who finds the buyer. The other options would apply only in scenarios where the broker was involved or where the agreement dictates payment differently, not when the owner sells independently.