Questions about listings make up a significant portion of the National test here in New Hampshire. As the license candidate it is crucial for you to be able to understand the differences and nuances that go along with each type of listing agreement. Let’s take a moment and review the types of listings.

Starting from the top

Exclusive Right to Sell - The seller is making you their only broker. You are the only one who has the right to sell that property. You are going to get paid no mater who brings the buyer to the property. The seller has even said that if they find the buyer themselves, you will still get paid. In essence, the seller has given up their right of disposition to you, the broker. It has a definite start and end date; terms of the commission are stated in a dollar amount or percentage; full property description and the seller’s terms of sale.

Exclusive Agency- Now you are the only broker who is authorized to sell this property. However, if the seller sells it themselves, you might not get a commission. The seller has kept the right to transfer the property without being obligated to pay the agent a commission. If the broker or any other broker brings the buyer, you are going to participate in the commission. Just like Exclusive Right, it has a definite start and end date; terms of the commission are stated in a dollar amount or percentage; full property description and the seller’s terms of sale.

Open Listing - Other language to say Open Listing include: Simple Listing, General Listing, NonExclusive Listing. Keep in mind they like to mix up the terms on the test. In this case, if you the broker bring a ready, wiling and able buyer to the property you will get a commission. The seller can “hire” multiple brokers under this arrangement and only pay the broker who brings the buyer to the deal. And if the seller sells it themself, they don’t have to pay a commission to any broker.

Option Listing - Gives the broker the right to purchase the property themselves within a specified time frame. The broker does not have to exercise this right to buy. The broker is not under any obligation to buy in this case but the seller must sell if the option is used. An Option Listing is very different than a “guarantee” from the broker to buy “If I don’t sell it in 90 days, I will buy it”.

Net Listing - This is when the broker’s commission is based on the seller receiving a specified NET and the agent receiving everything beyond that in commission. This is illegal in New Hampshire and many other states. This is when the seller says they want $200,000 and you sell it for a million and keep $800,00 for yourself. Now there is a conflict of fidiuciary interest. Not exactly fair, don’t you think?

So there you have it. Remember to keep your mind open during the reading of the question 3 times. The test wants to know if you know the difference between types of listing contracts. And now you do.

Interested in a career in real estate? The Real Estate Class is the place to start.