Exclusive Right To Sell

Definition of "Exclusive right to sell"

Tony Viejo real estate agent

Written by

Tony Viejoelite badge icon

American Realty of Bay County Inc

The Exclusive Right to Sell Listing is a type of Listing where the Listing Broker/Agent wins his/her commission even if he/she wasn’t directly responsible for the sale.

Let’s paint a scenario:

Say home seller John Smith wants to put his Beach House on the market. He decides to ask for the services of big-time broker Bob Taylor because Bob has all the best clients on the coast. Having such a great reputation on that community, with such an established clientele, Broker Bob can ask Home Seller John for an Exclusive Right to Sell agreement where even if another agent – or Home Seller John himself! – makes the sale, Bob still gets his commission.

Why would Home Seller John agree to that?”, you ask.

Well, keep in mind that influence is everything in the real estate business. Having Broker Bob’s “brand” on the property listing brings a sort of gravitas and awareness that helps to sell the house even if the final offer isn’t directly proposed by a Broker Bob client. Think of it as a license to use the Broker’s name to create a buzz about your property. The Broker deserves compensation for that even if he doesn’t bring the winning offer himself, right?

So that is why the Exclusive Right to Sell Listing exists: to make sure the prestige of a real estate Broker or Agent is fairly recognized as an asset to the property.

RealEstateAgent.com ADVICE:

Exclusive Right to Sell Listings are not to be confused with Exclusive Agency Listings. Check our Glossary Terms for other types of Listings such as Net Listings, Open Listings, and Multiple Listings.

And remember: Listings are agreements between Home Sellers and Brokers, so no side can force the other a specific kind of Listing. Don't hesitate to find the right real estate agent for you in our Real Estate Agent Directory.

Comments for Exclusive Right To Sell

Michael Michael said:

are net listings illegal in Michigan

Dec 28, 2020  06:30:28

 
Real Estate Agent

Hey, Michael! Please go and check our glossary term about net listing. Surely you will find your answer there.

Jan 04, 2021  08:12:55
 
 
image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

The meaning of a guarantee covers a legal and financially-binding agreement signed between three parties involved in real estate or financial transactions. In this document, typically ...

Person or business that obtains mortgages for others by finding suitable lenders. The mortgage broker sometimes deals with collections and disbursements. Typically the mortgage broker ...

Unexpected increase in the price of property not due to any effort on the owner's part. An example is when the appraised value of a house increases because of a population increase in the ...

Same as term closing: legal process of transferring a piece of real estate to a buyer. Typically it occurs in the office of the lender, attorney, or an escrow company. ...

If escrow is the legal “moment” where assets are held by a third party (an escrow agent) hired by both the buyer and the seller of goods like real estate and insurance until the ...

Time it takes to drive to an outlying area form a major urban area. The driving time radius can radically affect real estate values in outlying areas of major metropolitan regions. Unless ...

Also called trust deed. A document that conveys title to a neutral third party during the period in which the mortgage loan is outstanding as collateral for a debt. ...

The direction in which a community is growing. Directional growth is measured over time, and its path strongly influences current and future market values of those properties clearly in ...

An adversary hearing allows both parties to an issue to present their views. A public procedure performed by an administrative or legislative body to investigate certain matters and ...

Popular Real Estate Questions