Exclusive Right To Sell
What is an exclusive right to sell listing agreement?
An exclusive right to sell listing agreement is a listing contract entered into by a real estate broker and a seller. In this listing agreement, the seller agrees that no matter who sells their property, the broker secured under the exclusive right to sell listing agreement will receive a commission.
How is an exclusive right to sell listing different than other types of listing agreements?
In most listing agreements the seller of the house has the right to sell the property themselves without any assistance from the broker and NOT pay the broker a commission. However, under an exclusive right to sell listing agreement, even if the seller sells the home themselves without any assistance from the broker, they still have to pay a commission.
What is the most common type of listing agreement used by a broker?
The exclusive right to sell listing is the most common type of listing agreement used today. As you can see, it protects the broker who is working hard to find a buyer for the property. It wouldn’t make any sense for a broket to take a listing where if the property is sold they won’t get paid. Do you want to work for free? I didn’t think so.
An exclusive right to sell listing agreement is what type of contract?
It is express since it is in writing. It is also bilateral, as both parties to the contract make an enforceable promise. The broker promises to find a buyer. The seller promises to pay a commission to the broker if they do.
Is there a time limit in the contract?
Yes, all listing agreements will have a period during which they are in effect. Commonly, this period is 120-180 days.
Who determines the commission to be paid?
The listing agreement will state the exact commission to be paid if a sale occurs. The commission amount is determined by negotiation between the seller and the broker.
Can a seller secure multiple brokers to market their property for sale?
Yes, they could. If that is what a seller wanted to do, they could use an open listing agreement. An open listing agreement would allow the seller to secure as many brokers as they want to market their property for sale to the public. In an open listing agreement, only the broker who is responsible for the sale receives a commission. Additionally, if the seller sells the property themselves without any assistance from a broker, no commission is due.
What else can help me prepare to pass my real estate licensing exam on my first attempt?
Other tips to help you pass your real estate licensing exam on your first attempt:
Also, check out our question of the day videos on our YouTube channel: