Exclusive Right-to-Sell Agreement
An Exclusive Right-to-Sell Agreement is a legally binding contract between a property owner (seller) and a real estate agent or broker, granting the agent the exclusive right to market and sell the property during a specified period.
This agreement ensures that the seller cannot engage other agents to sell the property while the contract is in effect. If the property sells within the agreement’s term, regardless of whether the agent was involved in the sale, the agent is entitled to a commission. This type of agreement is beneficial for agents as it provides them with a guarantee of compensation for their efforts.
For example, if a homeowner signs an Exclusive Right-to-Sell Agreement with a real estate agent for six months, the agent has the exclusive rights to sell the home. If the home is sold through another agent or even by the homeowner themselves during this period, the original agent would still receive their commission. Thus, sellers often choose this agreement to motivate agents to invest time and resources into marketing the property effectively.
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