Question

What is one of the downsides to an exclusive agency listing?

Select one:
a. The buyer's agent cannot receive a commission
b. The agent has to give his or her entire commission to his or her principal broker
c. The agent is not guaranteed a commission
d. The agreement has no expiration date and can only be closed when the property sells

Answer 1

The main downside of an exclusive agency listing is that the agent is not guaranteed a commission if the homeowner sells the property themselves.

Step-by-step explanation:

One downside to an exclusive agency listing is that the agent is not guaranteed a commission. This is because with an exclusive agency listing, the homeowner retains the right to sell the property themselves without owing the agent a commission. If the homeowner is able to find a buyer on their own, the agent who has spent time and resources marketing the property will not receive a commission for their efforts. Therefore, the risk they take in potentially not being compensated can be considered a significant downside.