Exclusive Sale Write for Us

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What is an Exclusive Right to Sell?

“Exclusive right to sell” is a listing contract you enter into with a real estate agent. But, it says that the signing agent is the only person allowed to market and sell your property for some time. Generally, these agreements last anywhere from one to six months.

Exclusive right-to-sell agreements also dictate a commission — usually around 6% of the sales price — which you’d pay the agent if the property sold during the specific period, even if they didn’t find the buyer.

Pros of an Exclusive Right-to-sell Agreement for Investors

The most significant benefit of entering an exclusive right-to-sell arrangement is that your agent is motivated. They know a commission is on the line, and they will work hard to sell your property within the designated time frame.

It also takes the work off your shoulders. You’re not stuck marketing the property, showing the home, or hitting the pavement trying to find buyers. Instead, you’re free to focus on what you do best while the agent does the same.

Cons of an Exclusive Right-to-sell Agreement for Investors

The major downside with an exclusive right-to-sell contract is that you’re on the hook for a hefty commission no matter what. If your home sells within the specified contract period — by any means — then the agent gets the fee, plain and simple.

This is risky if you’re an experienced investor, especially one with many agent and industry connections. If you’ve been at it a while, there’s a good chance you might find a buyer on your own — or through your network. If that were to happen, you’d still be out that commission fee, whether your listing agent did any work.

Types of Listing Agreements

Exclusive Right-to-Sell Listing: A contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller, and the seller agrees to pay a commission to the listing broker, regardless of whether the property sold through the efforts of the listing broker, the seller, or anyone else; and a contractual agreement under which the listing broker acts as the agent or as the legally recognized.

Non-agency representative of the seller, and the seller agrees to pay a commission to the listing broker regardless of whether the property sells through the efforts of the listing broker. The seller, or anyone else, except that the seller may name one or more individuals or entities as exemptions in the listing agreement and if the property sells to any exempted individual or entity. The seller did not obligate to pay a commission to the listing broker.

Exclusive Agency Listing:

A contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller, and the seller agrees to pay a commission to the listing broker if the property is sold through the efforts of any real estate broker. If the property is sold solely through the seller’s efforts, the seller is not obligated to pay a commission to the listing broker.

Open Listing:

A contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller, and the seller agrees to pay a commission to the listing broker only if the property is sold through the efforts of the listing broker.

Note: These definitions provide to facilitate categorizing listings in MLS compilations. State law or regulation takes precedence in any conflict or inconsistency. Suppose state law permits brokers to list a property, on either an exclusive or open basis, without establishing an agency relationship. In that case, listings may not be excluded from MLS compilations because the listing broker is not the seller’s agent.

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