In an Exclusive Agency listing, which is true?

• A. Only one broker is allowed to act on behalf of the principal, but if the owner sells the property himself, no commission; if the broker sells, he will be entitled to a commission; unilateral contract.
• B. The broker is guaranteed a commission regardless of who procures the buyer; bilateral contract.
• C. The owner pays no commission if the owner procures the buyer.
• D. The listing must be in writing.

Answer: (A)

Exclusive Agency listing designates one broker as the agent, but the owner keeps the right to sell the property themselves without owing a commission. The broker only earns a commission if he is the procuring cause of a sale. This setup matches the statement that only one broker is authorized to act for the owner, and the owner pays nothing if they sell it themselves, while the broker earns a commission if he brings the buyer. In practice, the arrangement is based on promises: the owner promises to pay a commission if the broker procures a buyer, and the broker promises to use reasonable efforts to find one. The other options don’t fit because they either guarantee the broker a commission regardless of who procures the buyer, omit the owner’s right to sell without paying, or state a universal writing requirement that isn’t specific to the defining feature of an exclusive agency listing.