Which clause allows the seller to sell to certain parties without paying a commission?

• A. Reserve Clause
• B. Open Listing
• C. Joint Listings
• D. Agency Coupled With Interest

Answer: (A)

Understanding how listing contracts handle commission payments and exceptions is key here. A reserve clause is a provision that lets the seller designate certain purchasers who can buy the property without triggering a broker’s commission. By naming these parties, the seller preserves the right to sell to them directly or without owing a commission to the listing broker. That explicit carve-out is exactly what this clause provides, making it the best answer when the question asks about selling to specific parties without paying a commission.

Other concepts don’t create that specific carve-out. An open listing focuses on having multiple brokers and paying a commission only if a broker brings the buyer, without automatically excluding certain buyers. Joint listings involve shared listing responsibilities and commissions among brokers, not a buyer-specific exemption. Agency coupled with an interest deals with the broker’s rights tied to an interest in the transaction, not with reserving commission-free sales to named parties.