Hawaii Pre-Licensing National Practice Exam

A salesperson who prepares a written listing agreement with a seller is creating a contractual relationship between which parties?

1. The seller and the buyer

2. The buyer and the salesperson

3. The salesperson's broker and the seller

4. The salesperson and the property manager

The correct answer is: The salesperson's broker and the seller

When a salesperson prepares a written listing agreement with a seller, a contractual relationship is established primarily between the seller and the salesperson's broker. The listing agreement serves as a formal document that outlines the terms under which the broker will represent the seller's property in the market. In this scenario, the salesperson acts as an agent for the broker, thus creating a legal link between the seller and the broker's brokerage firm. The agreement specifies the responsibilities and obligations of the broker to the seller, including how the property will be marketed, the duration of the agreement, the commission to be earned upon the sale, and any specific duties the broker may take on while representing the seller's interests. Since the salesperson is typically an agent for a broker, the broker is the party ultimately responsible for the contractual agreement with the seller, making this the correct choice. The other options do not accurately reflect the parties involved in the contractual relationship initiated by the listing agreement. For example, a buyer is not directly involved in this particular agreement, as it specifically concerns only the seller and the broker’s representation. Additionally, there is no direct contractual connection between the salesperson and a property manager in the context of a listing agreement with a seller; the arrangement primarily focuses on the relationship between the seller