Contracts
In Alaska, an agreement that an agent will be paid only if a sale successfully closes is most accurately described as a:
ARetainer agreement
BContingent fee or success fee✓ Correct
CListing agreement
DCommission-free arrangement
Explanation
An arrangement where the agent's compensation depends on the successful completion of a transaction (the sale closing) is called a contingent fee or success fee. This is the standard arrangement in real estate — agents typically earn compensation only when a transaction closes.
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Key Terms to Know
Listing Agreement
A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Math Concepts
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