Which listing type is associated with an arrangement where a broker earns a commission only if they locate a buyer?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $25.99Unlock all

Study for the Burk Baker National Test. Use flashcards and multiple choice questions with hints and explanations to prepare effectively. Get ready for your exam!

Multiple Choice

Which listing type is associated with an arrangement where a broker earns a commission only if they locate a buyer?

Explanation:
Open listing means the seller allows multiple brokers to market the property, but only the broker who actually brings a buyer earns a commission. The seller can still sell the property themselves without paying anyone a fee. This setup specifically rewards the broker who locates a ready, willing, and able buyer, rather than guaranteeing a payment to a single broker regardless of who finds the buyer. In contrast, other listing types guarantee or structure commissions differently—one broker earns the fee no matter who finds the buyer, or the broker’s pay depends on the sale price or on procuring the buyer, not just on locating one.

Open listing means the seller allows multiple brokers to market the property, but only the broker who actually brings a buyer earns a commission. The seller can still sell the property themselves without paying anyone a fee. This setup specifically rewards the broker who locates a ready, willing, and able buyer, rather than guaranteeing a payment to a single broker regardless of who finds the buyer. In contrast, other listing types guarantee or structure commissions differently—one broker earns the fee no matter who finds the buyer, or the broker’s pay depends on the sale price or on procuring the buyer, not just on locating one.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy