Oregon Broker PSI Practice Exam

What is the implication if a broker lists property without a signed listing agreement?

1. The broker may still receive a commission

2. The listing may be legally binding

3. The broker cannot collect commission

4. The listing is automatically voided

The correct answer is: The broker cannot collect commission

When a broker lists property without a signed listing agreement, the implication is that the broker cannot collect a commission. A listing agreement is a formal contract between the seller and the broker that establishes the terms under which the broker will market and sell the property. Without this contract, the broker lacks the legal right to claim a commission because there is no agreement regulating the relationship or outlining compensation. In real estate transactions, the presence of a signed listing agreement is crucial; it provides legal protection for both parties and clarifies expectations. Without it, the broker cannot demonstrate that they have been authorized to act on behalf of the seller, which is essential for compensation. Therefore, the absence of a signed listing agreement means that the broker has no grounds to demand or collect any commission for their services.