Which type of listing agreement allows the seller to sell the property without paying the broker a commission?

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Prepare for the Real Estate Transactions Exam. Study with comprehensive questions, detailed hints, and explanations to enhance your knowledge and pass the exam with ease. Get exam-ready today!

The type of listing agreement that allows the seller to sell the property without paying the broker a commission is known as an Exclusive Agency listing. In an Exclusive Agency agreement, the seller retains the right to sell the property themselves. If the seller finds a buyer independently, they do not owe a commission to the broker, which distinguishes this type of listing from others such as Exclusive Right to Sell, where the broker is entitled to a commission regardless of who sells the property.

In this arrangement, the broker still has the opportunity to market the property and earn a commission if they are the one who facilitates the sale, but the seller's ability to sell on their own without incurring costs provides flexibility. This can appeal to sellers who have the capability and resources to market their property but still want the backup of a broker’s services.

The other types of listing agreements either do not allow this flexibility or guarantee the broker a commission regardless of seller involvement, which highlights the distinctive nature of the Exclusive Agency listing.

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