What is an "Exclusive Right to Sell" agreement?

An "Exclusive Right to Sell" agreement is a contract that grants a single real estate broker the exclusive right to sell a property on behalf of the property owner. This means that regardless of who finds the buyer – whether it's the broker, the owner, or another party – the broker is entitled to receive a commission once the property is sold. This type of agreement provides the broker with a strong incentive to market the property effectively, as they have the certainty of earning a commission for their efforts.

Furthermore, this contract is in contrast to other arrangements, such as open listings, where multiple brokers can compete to sell the property, or verbal agreements, which lack the legal formalities and enforceability of a written contract. As such, having an Exclusive Right to Sell agreement ensures that the broker is fully committed to promoting the property, providing the owner with a greater chance of a successful sale. The nature of this agreement fosters a dedicated and focused effort from the broker, aligning their goals closely with those of the property owner.