Washington State Real Estate Practice Exam

What type of listing agreement ensures that the broker gets paid no matter who finds the buyer?

1. Exclusive Right-to-Sell Agreement

2. Exclusive Agency Agreement

3. Open Listing Agreement

4. Net Listing Agreement

The correct answer is: Exclusive Right-to-Sell Agreement

The Exclusive Right-to-Sell Agreement is the correct choice because it provides significant benefits and protections to the broker involved. Under this type of agreement, the broker is granted the exclusive right to market and sell the property, which means that they will earn a commission regardless of who actually finds the buyer. This ensures that the broker has a strong incentive to actively promote the property, as they will be compensated for their efforts even if the seller finds a buyer on their own. In contrast, the other types of listings do not offer the same guarantee of payment to the broker. For example, the Exclusive Agency Agreement allows the seller to find a buyer without paying the broker a commission, thereby reducing the broker’s incentive. An Open Listing Agreement permits multiple brokers to market the property, and only the broker who finds the buyer gets paid, meaning there is no guarantee of payment for any single broker. Lastly, a Net Listing Agreement is based on the amount the seller wishes to receive from the sale, with the broker's commission being whatever amount is left over after that. While it can lead to a high commission, it does not assure that the broker will be paid if the seller sells the property directly. Thus, the Exclusive Right-to-Sell Agreement is designed specifically