What Is an Exclusive Agency?
An exclusive agency is a real estate listing agreement in which one broker is granted the exclusive right to market a property, but the seller retains the right to sell the property independently without paying a commission. The broker earns a commission only if the broker or a cooperating broker procures the buyer.
Exclusive Agency vs. Exclusive Right-to-Sell
- Exclusive agency: Broker earns commission only if broker finds the buyer; seller can sell independently
- Exclusive right-to-sell: Broker earns commission regardless of who finds the buyer
- Open listing: Multiple brokers may market; only the procuring broker earns commission
Advantages and Disadvantages
- Advantage: Seller retains flexibility to sell independently without commission
- Advantage: Still provides professional marketing through one dedicated broker
- Disadvantage: Broker may invest less in marketing without guaranteed compensation
- Disadvantage: Many brokers prefer exclusive right-to-sell and may decline this arrangement
Related Terms
- Contract — The listing agreement is a binding contract
- Equity — The property value the seller seeks to realize
- Closing — Where commission is paid
Barnes Walker Real Estate
Barnes Walker's real estate attorneys review listing agreements for Florida property owners, ensuring fair terms and proper commission structures. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC