Minnesota State Real Estate Practice Test 2025 – Comprehensive All-in-One Guide for Exam Success

When a seller signs a listing agreement, an exclusive right to sell agency is established. This type of agency means that the listing broker has the exclusive right to market and sell the property for a specified period, regardless of who finds the buyer. The seller is effectively granting the broker the authority to represent them fully in the transaction, which includes marketing the property, negotiating on behalf of the seller, and any other activities required to facilitate the sale.

The exclusive right to sell agreement typically provides for the broker to earn a commission if the property sells, even if the seller finds the buyer themselves. This contrasts with other types of listings, such as an open listing, which allows the seller to work with multiple brokers and only pays a commission to the agent who brings a buyer.

Understanding this agency type is crucial as it establishes the legal relationship and responsibilities between the seller and the broker, influencing how the transaction is managed and the obligations of both parties.