Exclusive agency: broker paid unless the OWNER sells it themselves
Before you read
Test yourself first: 5 questions
Question 1 of 5
The principal federal law that prohibits price-fixing, group boycotts, and market allocation in the brokerage business is the:
Answer: B. The Sherman Antitrust Act is the foundational federal statute prohibiting agreements that restrain trade, including price-fixing, boycotts, and market allocation among real estate competitors.
Question 2 of 5
An agreement letting a licensee from another state become licensed more easily is:
Answer: A. Reciprocity/mutual-recognition agreements ease licensing for out-of-state licensees, often waiving some education or exam portions.
Question 3 of 5
A listing expires. Two weeks later the seller sells directly to a buyer whom the broker had shown the home during the listing period. The listing contained a 90-day protection clause. The broker is entitled to:
Answer: C. The protection (safety) clause preserves the fee when the owner sells within the protection period to a buyer the broker INTRODUCED during the listing. The standard exception — relisting with another brokerage — doesn't apply here.
Question 4 of 5
At an open house, an unrepresented visitor tells the listing agent, 'We'd go to $520,000 if we had to.' The visitor later offers $495,000 through their own agent. The listing agent should:
Answer: B. The visitor is a CUSTOMER; the seller is the CLIENT. Material information voluntarily revealed by a customer — like willingness to pay more — must be passed to the client under the duty of disclosure. Confidentiality protects clients, not customers.
Question 5 of 5
A subagent of the listing broker owes fiduciary duties to:
Answer: B. A subagent works through the listing broker and owes fiduciary duties to that broker's client — the seller.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Exclusive right to sell: broker paid NO MATTER who finds the buyer — most protection
- Exclusive agency: broker paid unless the OWNER sells it themselves
- Open listing: any broker who procures the buyer gets paid; owner can sell free
- Net listing: broker keeps everything above a set price — illegal/discouraged in most states
- All listings need an expiration date; automatic extensions are prohibited
Listing Agreements — Pick Your Poison: FAQs
Is Listing Agreements — Pick Your Poison on the real estate exam?
Yes. Agency & Fiduciary Duties is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
