In an exclusive listing, what is the commission structure for the listing broker?

Prepare for the Bob Hogue Sales Associate Exam with expert-level resources. Empower your study process using interactive quizzes, flashcards, and comprehensive questions that include insightful explanations and answers to excel and achieve success.

In an exclusive listing agreement, the commission structure is designed to provide strong incentives for the listing broker. The correct option indicates that the commission is paid to the listing broker regardless of whether the property ultimately sells. This arrangement encourages the broker to dedicate their efforts toward marketing and selling the property effectively, knowing that they will be compensated for their services as stipulated in the exclusive listing agreement.

The exclusivity of the listing means that the seller is committed to working only with that particular broker for the sale of the property, reinforcing the broker's rights to the commission if a sale occurs. This solidifies the broker’s position and enhances their motivation to negotiate favorable terms for the seller and attract potential buyers.

The other options, while addressing aspects of commission structures, do not correctly reflect the specific nature of exclusive listings. In such agreements, the assurance of payment to the listing broker, regardless of the sale's outcome, is a key characteristic that aligns with the buyer's commitment to the agreement's terms.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy