New York State Real Estate Salesperson Licensing Exam

Which agreement allows property owners to sell their property without owing a commission to the broker if they find a buyer themselves?

1. Open Listing

2. Exclusive Right to Sell

3. Exclusive Agency

4. Net Listing

The correct answer is: Exclusive Agency

The correct answer is based on the nature of the agreement in question. An Exclusive Agency listing permits property owners to sell their property independently without incurring a commission fee to the broker if they find a buyer themselves. In this type of agreement, the broker is granted the right to market the property and earn a commission if they bring a buyer, but the owner retains the ability to sell the property without owing a commission to the broker if they secure a buyer on their own. The context of other types of listings clarifies further: an Open Listing allows multiple brokers to market the property, and the seller owes a commission only to the broker who sells the property. An Exclusive Right to Sell grants the broker the exclusive right to receive a commission regardless of who sells the property, including the owner themselves. A Net Listing is a less typical agreement where the seller specifies a net amount they want to receive, and any amount above that goes to the broker, but this does not directly relate to the owner's ability to sell independently without owing a commission.