Florida Real Estate Practice Exam

Which type of listing agreement would best suit Janice's needs to avoid paying a commission if her neighbor buys the property, while still receiving representation?

1. Exclusive agency

2. Exclusive right to sell

3. Net

4. Open

The correct answer is: Exclusive agency

Janice's needs require a listing agreement where she can avoid paying commission if her neighbor buys the property. The options B, C, D do not provide this option. Option B, Exclusive right to sell, gives the listing agent the sole right to sell the property and earn commission, regardless of who finds the buyer. Option C, Net, would require Janice to pay a commission no matter who finds the buyer. Option D, Open, also known as "for sale by owner," would not provide representation for Janice and she would still be responsible for paying a commission to a buyer's agent. The best option for Janice would be an Exclusive agency agreement, where she would only pay commission to her listing agent if they find a buyer, and she would not be responsible for paying a commission if her neighbor purchases the property.