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James signed a listing agreement that only requires him to pay a commission to the agent who locates a buyer. What is this type of agreement called?

  1. Exclusive agency

  2. Exclusive right to sell

  3. Open

  4. Seller's choice

The correct answer is: Open

A) Exclusive agency agreements allow the seller to still find a buyer themselves without paying a commission to the agent. B) Exclusive right to sell agreements make the agent the sole recipient of commission, even if the seller finds the buyer. D) Seller's choice is not a standard term used for listing agreements. Open agreements, also known as open listings, allow the seller to work with multiple agents and only pay commission to the one who successfully finds a buyer. This is different from exclusive agency agreements, where only one agent is hired to represent the seller, and exclusive right to sell agreements, where only one agent receives commission regardless of who finds the buyer. Seller's choice is not a common term used for listing agreements and therefore not the correct answer.