California Real Estate Practice Exam

What is an offer by a listing broker to split a commission with a cooperating broker through the multiple listing system?

1. A mutual agreement

2. An express unilateral agreement

3. A binding contractual agreement

4. A standard bilateral agreement

The correct answer is: An express unilateral agreement

An express unilateral agreement is the correct answer because it accurately describes the situation in which a listing broker offers to split a commission with a cooperating broker through the multiple listing system. This is a one-way agreement in which the listing broker is making an offer to split the commission, not a mutual agreement where both parties come to a decision. It is also not a binding contractual agreement because it is not a legally binding contract until the cooperating broker accepts the offer. Lastly, it is not a standard bilateral agreement because it is not an agreement between two parties with equal obligations, as the listing broker is offering to split the commission with the cooperating broker.