What is an exclusive right to sell listing?

An exclusive right to sell listing is a contractual agreement between a property owner and a real estate broker, which provides the broker with the sole right to market and sell the property. If the property is sold during the term of the listing agreement, the seller is obligated to pay the agreed-upon commission to the broker, regardless of who actually finds the buyer.

This arrangement offers several advantages for both the seller and the broker. For the seller, it ensures that the broker is highly motivated to invest time, money, and resources into marketing the property effectively, since they will earn a commission if the property sells. For the broker, the exclusive right to sell listing secures them a guaranteed commission, even if the buyer is introduced by someone else.

The other options do not accurately describe the nature of an exclusive right to sell listing. A contract that allows the owner to sell without paying commission does not reflect the obligation to pay the broker a commission when the property sells. Likewise, a basic agreement without any commissions would not have the same terms as an exclusive right to sell listing, and an agreement for open listings with multiple agents implies competition among brokers that differs from the exclusivity of the listing.