Tennessee Real Estate License Exam Practice Question
Which of the following provisions is most likely included in a standard exclusive right-to-sell listing agreement?
Correct Answer: A
Rationale: Option A is typically included in exclusive right-to-sell agreements, ensuring that the listing agent earns a commission if they secure a buyer before the contract ends, even if the sale closes afterward. This provision protects the agent's efforts and incentivizes them to find buyers actively.
Option B is incorrect as most agreements do not automatically extend without mutual consent; extensions usually require negotiation.
Option C is misleading; while some agents may negotiate renewal rights, they are not standard in exclusive agreements.
Option D contradicts the nature of exclusive agreements, which generally bind the seller to the terms, including potential obligations for compensation upon cancellation.
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