Who is responsible for paying the commission in a real estate transaction with an exclusive right-to-sell listing?

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Prepare for the Real Estate Financing and Settlement Exam. Study with flashcards and multiple-choice questions, each with hints and explanations. Get ready to pass your exam!

In a real estate transaction involving an exclusive right-to-sell listing, it is the seller who is responsible for paying the commission. This arrangement is typically outlined in the listing agreement signed by the seller and their real estate agent.

The exclusive right-to-sell contract establishes that the agent has the sole authority to sell the property and will earn a commission regardless of who ultimately sells it, whether that be the agent, another agency, or even the seller themselves. This commission is usually a percentage of the sale price and is paid at the closing of the transaction.

The other parties involved do not assume responsibility for the commission in this type of listing. The buyer may contribute to closing costs, but they are not liable for the real estate agent's commission unless specifically specified in the sale agreement. The real estate agent typically earns their commission through the service they provide in facilitating the sale, and the lender’s role is primarily financial, focusing on providing mortgage financing rather than participating in commission structures.

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