Final answer:
The exclusive right of sale listing contract is popular because it ensures that brokers are compensated for their marketing efforts, upholds the integrity of the MLS system, and reduces the risk of losing a commission after investing in property marketing.
Step-by-step explanation:
Reasons why the exclusive right of sale listing contract is the most widely used listing contract are manifold. Firstly, within a Multiple Listing Service (MLS) system, allowing an owner to sell their property and potentially avoid paying a commission could negatively impact the integrity of the MLS. This is because the collective marketing effort of multiple real estate agents under the MLS umbrella is predicated on shared potential for earning commission on sales. Furthermore, brokers who have confidence that they will receive the rewards of their marketing efforts in the form of a secured commission are more incentivized to invest time and resources into selling the property. Lastly, brokers aim to minimize the risk of investing in the marketing of a property only to be 'scooped' by another agent who closes the sale and claims the commission after the groundwork has been laid by the initial broker.