Iowa Real Estate Practice Exam

Which of the following agreements is NOT required to be in writing?

1. Exclusive agency agreement

2. Open listing

3. Multiple listing

4. Exclusive right-to-sell agreement

The correct answer is: Multiple listing

In real estate practice, the requirement for certain agreements to be in writing stems from the Statute of Frauds. This statute typically mandates that listings that involve the transfer of an interest in real property be documented in writing to be enforceable. Among the options presented, an open listing does not need to be in writing to be valid. This type of agreement allows multiple brokers to market a property, and the seller agrees to pay a commission only if one of those brokers successfully finds a buyer. On the other hand, exclusive agency agreements and exclusive right-to-sell agreements are types of listings that do require a written contract. These agreements give one broker the right to represent the seller in the sale of a property, which creates a more formal relationship. A multiple listing service (MLS) is a system used by brokers to share listings and does not constitute a direct agreement with any one party concerning the sale of the property. Thus, while a multiple listing service can involve written agreements between brokers, the listing of a property in the MLS itself does not need to be a separate written contract from the underlying listing agreement. In summary, the open listing lacks the formalities that necessitate writing for enforceability, which differentiates it from exclusive agreements, making it the