What is an exclusive listing contract?

• A. Gives one broker the authority to offer the property for sale during a specified period.
• B. Allows multiple brokers to cooperate and share information.
• C. Is always verbal.
• D. Guarantees a sale within 60 days.

Answer: (A)

An exclusive listing contract means one broker is given the sole right to market and offer the property for sale for a defined period. The seller agrees not to list with other brokers during that time, and the designated broker handles showing the property, negotiating, and presenting offers. If a sale happens during the term, that broker earns the commission according to the contract, regardless of who finds the buyer (subject to the contract’s terms). This setup is what distinguishes an exclusive listing from open listings or MLS-style cooperation, where multiple brokers may be involved.

It’s not about multiple brokers cooperating, which would be more like an MLS or co-brokerage arrangement. Listings aren’t typically verbal; they’re usually in writing to be enforceable. And there’s no guarantee of a sale within a set period.