Massachusetts Real Estate License Practice Test

What is a key feature of an exclusive listing agreement?

1. It allows multiple brokers to list the property

2. It provides a fixed listing price

3. It gives one broker the sole right to sell

4. It requires open house events to sell

The correct answer is: It gives one broker the sole right to sell

An exclusive listing agreement is a type of real estate contract that grants one broker the sole right to sell a property. This means that the owner of the property agrees to work only with that particular broker for the duration of the agreement. This exclusivity creates a clear relationship where the broker is incentivized to actively market and sell the property, knowing they will benefit from their efforts if the property sells. The nature of this agreement often leads to more focused marketing efforts from the broker, as they are fully committed to closing the sale. Additionally, the seller can feel confident that their property is being represented properly, since they are not competing against multiple brokers simultaneously. The other choices don't accurately describe key features of an exclusive listing agreement. While it is possible for listing price to be discussed in the agreement, it is not a defining characteristic. Likewise, the agreement does not require open house events; it's up to the broker and the owner to decide whether such events will take place. Lastly, an exclusive listing does not allow for multiple brokers to list the same property, which is contrary to the exclusive aspect of the agreement.