Exclusive Agency
An exclusive agency agreement in real estate is a formal contract between a property owner (seller) and a licensed real estate agent or broker. In this agreement, the seller grants the agent exclusive rights to represent and market the property for sale within a predetermined timeframe. Unlike an exclusive right-to-sell agreement, which requires the seller to pay the agent a commission regardless of who procures the buyer, the exclusive agency agreement allows the seller to retain the option of selling the property independently without owing the agent a commission. However, if the agent successfully brings a buyer who purchases the property during the agreement period, the agent is entitled to receive a commission as stipulated in the contract. This arrangement provides the seller with flexibility while still benefiting from the agent’s marketing efforts and expertise in attracting potential buyers.