Humber/Ontario Real Estate Course 2 Exam Practice

What type of listing agreement allows a seller to sell their property independently without paying a commission?

1. Exclusive Listing

2. MLS® Listing

3. Non-Exclusive Listing

4. Open Listing

5. Private Listing

6. Single Agency Listing

The correct answer is: Open Listing

An open listing agreement allows a seller to sell their property independently without paying a commission to a real estate agent. In an open listing agreement, the seller retains the right to engage multiple agents or sell the property themselves, and only the agent who successfully procures a buyer is entitled to a commission. This type of listing offers the seller the most flexibility and control over the sale process. The other options are not correct because: - Exclusive Listing: In an exclusive listing, only one real estate agent is given the right to sell the property. If the seller finds a buyer independently, they still have to pay the commission to the listing agent. - MLS® Listing: An MLS® listing is a type of listing agreement where the property is listed on the Multiple Listing Service, a database that allows real estate agents to share listings and cooperate on sales. Sellers usually pay a commission to the listing agent regardless of who finds the buyer. - Non-Exclusive Listing: In a non-exclusive listing, the seller can engage multiple agents to sell the property, but the agent who secures the buyer is the only one entitled to a commission. - Private Listing: This term does not correspond to a specific type of listing agreement in real estate. - Single Agency Listing: In a single agency listing, the agent only represents either the buyer or the seller, not both parties in the transaction.