Humber/Ontario Real Estate Course 3 Exam Practice

Which type of listing agreement provides the highest level of security for an agent?

1. Open Listing.

2. Exclusive Listing.

3. Net Listing.

4. Multiple Listing.

5. Non-Exclusive Listing.

6. Sole Agency Agreement.

The correct answer is: Exclusive Listing.

An exclusive listing agreement provides the highest level of security for an agent because it grants the agent sole rights to market and sell the property. In this arrangement, the property owner commits to working with only one agent for the sale of their property, which eliminates competition from other agents. As a result, the agent is assured that any successful sale will yield a commission, as they are the only agent involved in the transaction. This type of agreement ensures that the agent can dedicate their efforts without the worry of sharing the commission with another agent who might also be trying to sell the same property. The exclusivity of the agreement incentivizes the agent to invest time and resources into marketing the property effectively, as they will receive full compensation upon a successful sale. Thus, the exclusive listing creates a more stable and predictable working relationship for the agent, contributing to a higher level of security compared to other listing types, which may involve shared responsibilities or commissions.