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

Method of selling and obtains possession, but the seller retains the title. ...

The term statute is a written law that is adopted by a legislative body from the country, federal, state, county, or city level. The statute definition can be a legislative written decree ...

Legal proceeding to exercise a right in a disagreement between private individuals or businesses. One party seeks a remedy against the other. It does not involve a criminal situation. ...

How much water may be retained in a unit, such as an expansion tank in a home. ...

See ordinary annuity. ...

Provision in a commercial lease providing a financial allowance for a tenant to finish the interior of a building according to individual requirements. ...

A method of purchasing real estate whereby a maximum amount of leverage is used. Normally the seller will finance the down payment necessary to acquire a mortgage. Thus, the purchaser is ...

The down payment on the price of a real estate. For example, it is customary to make a down payment of 10% of the value of a real estate parcel upon signing the purchase agreement. ...

The time period a real estate investment is held. The return is tied to the time period of the investment. The period is used for income tax purpose to determine whether a profit earned or ...

Popular Real Estate Questions