Agency and non-agency relationships Flashcards
(5 cards)
exclusive right-to sell-listing agreement
What it means:
You hire one real estate agent to sell your home.
No matter who finds the buyer — whether it’s the agent, another agent, or even you — your agent still earns a commission.
Think of it like:
“I’m trusting you to handle this sale, and I’ll pay you no matter who brings the buyer.”
✅ Agent is motivated
✅ Most common type
❌ You must pay the commission if it sells
Exclusive Agency Listing Agreement
What it means:
You still hire just one agent, but if you find your own buyer, you don’t have to pay the agent a commission.
Think of it like:
“You’re my only agent, but if I sell it myself, I don’t owe you anything.”
✅ Some flexibility for you
❌ Less incentive for agent to work hard, since they might not get paid
Open Listing Agreement
What it means:
You can list your home with many different agents — whichever one brings a buyer gets the commission. If you find a buyer yourself, you pay no one.
Think of it like:
“May the best agent win — or I’ll just sell it myself and keep all the money.”
✅ Maximum freedom
❌ Agents won’t work hard, because they might not get paid
Net Listing
What it means:
You tell the agent, “I want to get $X from the sale. Anything above that is yours as commission.”
Example:
You say, “I want $300,000 for the house.” If the agent sells it for $320,000, they keep $20,000.
Think of it like:
“Just get me my number — and you can have the rest.”
❌ Risky for sellers (can lead to agents acting in their own interest)
❌ Not even legal in all states
In Illinois, net listings are legal but not recommended because of the potential for fraud.
Option Listing
It’s like the owner says:
“You can try to sell my house, but if you decide you want to buy it, you can — at the price we agree on now.”
So, the agent gets two chances:
Find a buyer and earn a commission.
Or buy it themselves at the agreed price, no commission involved.
It’s not very common because it can create a conflict of interest — the agent might want to buy it cheap instead of getting the best deal for the seller.
