Final answer:
The type of agency relationship that exists when the seller agrees to only work with one brokerage is called an exclusive agency relationship.
Step-by-step explanation:
In an exclusive agency relationship in real estate, the seller engages a single brokerage to represent them in selling their property. While the seller grants exclusivity to this particular brokerage, they reserve the right to sell the property independently without owing any commission, unless the sale is made by the contracted brokerage or another specified party. This arrangement incentivizes the brokerage to dedicate resources, time, and effort into marketing and selling the property since their compensation depends on successfully closing the deal.
However, if the seller finds a buyer themselves or through a different agent not excluded by the agreement, the brokerage doesn't receive compensation. It differs from an exclusive right to sell where the brokerage earns a commission regardless of who finds the buyer. In summary, an exclusive agency relationship grants one brokerage the exclusive right to sell a property but allows the seller to sell independently without owing commission under certain conditions.
Correct answer: Exclusive agency relationship