Listings and agency agreements

Question 1

A developer appoints only a small panel of chosen agencies to market units in a new launch and reserves the right to sell units directly from its own sales gallery. A separate homeowner appoints a single agent exclusively. The agent asks how a personal sale by the principal is treated under each arrangement, and whether the developer and the homeowner are in the same position when they find their own buyer. The trainee's instinct is that a principal who does the work himself should never have to pay, but the trainer says that instinct is only half right. Which statement is correct?

1. A. Under the sole arrangement the developer still owes the panel on a personal sale, whereas under the exclusive arrangement the owner does not.
2. B. Under both arrangements the principal may sell personally without owing any appointed agent commission.
3. C. Under both arrangements the principal is entirely barred from selling the property personally.
4. D. Sole: the developer may sell its own units without paying the panel. Exclusive: the owner still owes the agent.

Question 2

A seller who wants the widest possible exposure asks his agent to run through the features of an open (non-exclusive) listing before he commits. He has heard conflicting accounts of whether he would owe commission on a sale he closes himself, how many agents he may put on the job, and when such a listing comes to an end, and he wants each point settled before he signs.

Consider the following statements.

1. (i) The owner who finds a buyer personally must still pay the appointed agents commission.
2. (ii) A non-exclusive agreement has no fixed expiry date and auto-terminates on sale or withdrawal.
3. (iii) Any number of agents may market the property under an open listing.
4. (iv) Only the agent who actually closes the transaction is paid commission.

1. A. (ii), (iii) and (iv) only
2. B. (ii) and (iv) only
3. C. (iii) and (iv) only
4. D. (i), (ii), (iii) and (iv)