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Contracts, 12% of the examination

Listing agreement

An employment contract authorizing a broker to perform stated real estate services for an owner.

Open, exclusive agency, and exclusive right-to-sell listings allocate compensation differently. A net listing describes compensation rather than exclusivity and requires full disclosure and careful handling of the broker's fiduciary duty. To enforce compensation for negotiating a real property sale, the broker's authorization generally must be written. An exclusive listing needs a definite termination date, and current California law imposes additional duration and renewal limits on agreements covering specified residential property.

See also

Exclusive right-to-sell listingA listing that generally earns the broker's agreed compensation if the property sells during the term, regardless of who finds the buyer.Procuring causeThe broker whose continuous efforts set in motion the chain of events resulting in the sale.

Test the distinction

A relevant question from Contracts, selected because its facts or explanation use this concept.

Contracts ยท 12%Listing Agreements

Which listing type pays the broker regardless of who finds the buyer?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.

Primary sources

Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.

Where this is tested

ContractsAll eight official DRE contract topics in one California-specific guide, from formation and representation agreements to purchase offers, notes, options, remedies, and advance fees.12%Practice Contracts24 questions on this area, every option explained.Practice

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