Donald Van Dorn has entered into a listing agreement to sell his home through Broker David Polk. Polk is the only broker who has the right to sell the home during the listing period. But Van Dorn has reserved the right to avoid liability for the commission by selling the home himself. This kind of agreement is called:

Question

Social Studies

Mercedes Macias

1 August, 23:55

Donald Van Dorn has entered into a listing agreement to sell his home through Broker David Polk. Polk is the only broker who has the right to sell the home during the listing period. But Van Dorn has reserved the right to avoid liability for the commission by selling the home himself. This kind of agreement is called:

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Wayne Mcmahon · Answer 1

An exclusive agency

Explanation:

An exclusive agency gives one broker the exclusive right to sell a particular property, though they may agree to pay a portion of their sales commission to a broker who procures a buyer. An exclusive agency agreement allows the seller to sell the property directly and not have to pay a commission to the listing broker.

This protection lets the agent receive full commission, in case the buyer they brought changes their mind and comes back later, after the agreement has expired.