Final answer:
The arrangement in which a licensee conditions the sale of a lot with the right to list the buyer's existing home is known as tying sales. In real estate, it is a bundled sale that links the purchase of a lot to a service (the listing) as a single transaction, involving inherent rights to enter into contracts and sometimes restrictive covenants.
Step-by-step explanation:
An arrangement in which a licensee conditions the sale of a lot to a buyer with the right to list their existing home is known as tying sales. Tying sales is a scenario where a buyer is allowed to purchase a product (in this case, a lot) only if the buyer agrees to the additional condition of another product or service (the right to list their existing home). This condition creates a bundle sale, where two separate items or services are linked together as part of a single transaction.
These types of practices are noteworthy because they can sometimes run afoul of competitive practices laws if they are seen to unreasonably restrict the free market. Yet, in the context of real estate, it can be a strategic decision from a licensee's viewpoint. This is because the property comes with the inherent right to enter into contracts with other parties. As part of these contracts, tying arrangements might be made to facilitate certain transactions. However, they must be approached with caution due to the legal implications they may carry, as seen in historical cases such as those documented by Patricia Buk related to homeowner's deeds with restrictive and exclusionary covenants.