Key Takeaways
- Exclusive right to sell gives the broker commission regardless of who finds the buyer
- Exclusive agency allows the owner to sell without paying commission if they find the buyer
- Open listings mean only the procuring broker earns commission
- Net listings are ILLEGAL in New York
- All listing agreements in NY must be in writing to be enforceable
Last updated: January 2026
Listing Agreements
Understanding listing agreement types is crucial for the NY exam.
Types of Listing Agreements
Exclusive Right to Sell
The most protective for the broker:
| Feature | Detail |
|---|---|
| Commission | Broker earns regardless of who sells |
| Owner sells | Still pays broker |
| Another broker sells | Still pays listing broker |
| Most common | Standard for MLS |
Exclusive Agency
Allows owner to sell without commission:
| Feature | Detail |
|---|---|
| Broker finds buyer | Commission earned |
| Owner finds buyer | NO commission owed |
| Another broker sells | Listing broker earns |
| Less common | More risk for broker |
Open Listing (Non-Exclusive)
Multiple brokers can work the listing:
| Feature | Detail |
|---|---|
| Multiple brokers | Can have same listing |
| Procuring cause | Only producing broker paid |
| Owner finds buyer | No commission |
| Least protection | For broker |
Net Listings - ILLEGAL in NY
Net listings are PROHIBITED in New York:
| What it is | Why illegal |
|---|---|
| Seller names net amount | Conflict of interest |
| Broker keeps excess | Potential for fraud |
| No stated commission | Lack of transparency |
Example: Seller says "Get me $300,000 net and keep the rest." This is ILLEGAL in NY.
Required Elements
All NY listing agreements must include:
| Element | Purpose |
|---|---|
| In writing | Statute of Frauds |
| Parties identified | Clear identification |
| Property description | What's being sold |
| Price | Asking price |
| Commission | Clearly stated |
| Term/expiration | Beginning and end |
| Signatures | All parties |
Listing Agreement Provisions
Protection Clause (Extender/Safety)
| Feature | Purpose |
|---|---|
| Time period | Usually 30-90 days |
| Protected buyers | Those shown during listing |
| Commission earned | If they buy after expiration |
| Written list | Required to enforce |
Commission
| Type | Typical |
|---|---|
| Residential | 5-6% (negotiable) |
| Commercial | Varies widely |
| Flat fee | Possible |
Note: All commissions are negotiable—price fixing is illegal.
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Test Your Knowledge
Under an exclusive right to sell listing, the owner finds a buyer without the broker's help. Does the broker earn a commission?
A
B
C
D
Test Your Knowledge
Are net listings legal in New York?
A
B
C
D