An Exclusive Right-to-Sell Agreement is a contract between a property owner and a real estate broker. It grants the broker the sole right to sell the property and earn a commission, regardless of who brings in the buyer.
Context
Exclusive Right-to-Sell Agreements are commonly used by sellers and real estate brokers. They offer brokers a guarantee that their efforts to market and sell the property will be rewarded with a commission, even if the seller ends up finding the buyer.
Example of Exclusive Right-to-Sell Agreement
For instance, if a seller signs an Exclusive Right-to-Sell Agreement with a broker, and later finds a buyer through a friend, the broker is still entitled to a commission because of this agreement.
Related Real Estate Terminology
- Listing Agreement: A contract between a property owner and a real estate broker, authorizing the broker to represent the owner in selling their property.
- Commission: The fee a real estate broker or agent earns for their services, typically a percentage of the property’s selling price.
- Open Listing: A non-exclusive agreement that allows multiple brokers to try to sell a property.
Legal or Regional Considerations
The specifics of Exclusive Right-to-Sell Agreements may vary between jurisdictions. It’s always important to consult local real estate laws and regulations before signing such an agreement.
Significance
Understanding the Exclusive Right-to-Sell Agreement is vital for both sellers and brokers. It assures brokers their efforts will be compensated, while sellers need to be aware of their obligations.
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