Exclusive Right-to-Sell Agreement
Definition and meaning of Exclusive Right-to-Sell Agreement in real estate.
An exclusive right-to-sell agreement is a legally binding contract that grants a single real estate broker the sole right to market a property and earn a commission. Under this contract, the broker is paid regardless of who ultimately finds the buyer, including the seller.
In more detail
This agreement is the most common type of listing contract used in residential real estate. It provides the broker with maximum security, ensuring that their investment of time, staging, and advertising money will be compensated if the home sells during the term. For sellers, this contract motivates the agent to work diligently, knowing their commission is protected.
Even if the owner finds a buyer through their own personal network, the listing broker is still legally entitled to the agreed-upon commission percentage at closing.
Key facts
| Category | Buying & Selling |
|---|---|
| Commission guarantee | Paid to the broker regardless of who finds the buyer |
| Typical timing | Signed at the beginning of the home selling process before marketing starts |
| Required by | Most traditional brokerages to list a property on the local Multiple Listing Service |
A seller signs an exclusive right-to-sell agreement with an agent, and three weeks later, a colleague at work offers to buy the house. The seller must still pay the agent the agreed commission at closing.
Frequently asked questions
What happens if the exclusive right-to-sell agreement expires?
If the contract expires before a buyer is found, the seller owes no commission and is free to list with another broker or sell the home independently.
Can I exclude specific buyers from an exclusive right-to-sell agreement?
Yes, sellers can negotiate an amendment that names specific individuals who, if they buy the home, will not trigger a commission payment to the broker.