Texas Crammer Practice Exam

In an exclusive agency listing, what happens if an owner sells to a family member without the broker's assistance?

1. The broker is entitled to a commission

2. The broker is not entitled to a commission

3. The sale is invalid

4. The broker may still charge a fee

The correct answer is: The broker is not entitled to a commission

In an exclusive agency listing, the owner retains the right to sell the property independently without incurring a commission fee to the broker, provided they do not use the broker's services for that transaction. This means if the owner sells the property to a family member on their own, they are not obligated to pay a commission to the broker. The nature of an exclusive agency agreement allows the owner to maintain that flexibility, which can be particularly valuable in personal situations such as selling to a family member. The intent of this listing type is to incentivize the broker to find a buyer while simultaneously allowing the owner to have direct control over occasional transactions, such as those involving known parties like relatives. Thus, in this scenario, the broker would not be entitled to a commission since the sale occurred outside of their engagement.