- Exclusive right to sell : If the agreement is between a seller and a broker, it could include the exclusive right to sell, thereby giving the chosen firm or agent the sole right to sell the property.
- Buyer-broker exclusivity : Buyer-broker exclusivity in an exclusive agency agreement means that a buyer will only work with the firm or agent the buyer chose. The buyer cannot change or look for other firms and agents to work with.
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60 projects on CC CC verifiedShould You Sign an Exclusive Agency Agreement?
Before deciding if an exclusive agency listing is right for you, you should consider the advantages and disadvantages of the agreement.
Advantages of Exclusive Agency Listings
- Save Money : This type of listing can help you save money. If you find a buyer independently for your home and sell the property, you will not pay any commission to the real estate firm or agent.
- Better Relationships with your Agent : Since an exclusive agency agreement gives the agent the right to exclusively market your property, greater trust is established between you and your agent, which can create a better working relationship.
Disadvantages of Exclusive Agency Listings
- Agent Motivation : If commission is not guaranteed, an agent might not be motivated to market and sell the property as much as if it were. You may also create a sense of security for the listing agent, as opposed to hiring multiple that may work harder to create a sale.
- More work for seller : Since the agent might not be motivated, there would be more work for you, or the seller, to market and sell your home.
You can compare the pros and cons of an exclusive right agreement before deciding which would be the best fit for you. Here are some pros and cons of an exclusive right agreement:
Advantages of Exclusive Right Listings
- Motivated Agent: Since the contract has a fixed term and the agent will earn a commission under an exclusive right to sell agreement, they are more likely to be motivated to find and sell the property.
- Multiple Listing Service: In order to sell the property quickly, the agent is more likely to use multiple listing services to provide exposure.
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Disadvantages of Exclusive Right Listings
- Cancellation policy of the contract: Some contracts do not allow cancellation mid-term. Read through the agreement before signing.
- Pay Commissions Regardless: You may be able to find your own homebuyer but still be required to pay the agent commissions for the sale.
Want to know if an exclusive right listing is a better fit for you? Here is an article comparing the pros and cons of exclusive right listings.
Before signing an exclusive agency, agreement make sure to read thoroughly and ask questions. Do the following before signing an exclusive agency agreement:
- Inquire about a shorter term : If your contract seems too long, you can negotiate the term of the contract.
- Ask for a trial run: Before handing off your house to an agency, you might want to go for a trial run to ensure they are fit to sell your house. You can also ask your firm or agent for a trial run before signing an exclusive agency agreement to ensure you can work well with your firm or agent.
- Read the fine print : You will want to ensure that all clauses are agreed upon in the agreement. If there are provisions and conditions to any services being offered by the firm, be sure to read through them before signing the contract.
You can find templates online to draw up your own exclusive agency agreement. However, it is advised to consult a real estate professional to ensure a smooth deal.
Get Help with a Buying Agency Agreement
Do you have any questions about buying agency agreement and want to speak to an expert? Post a project today on ContractsCounsel and receive bids from real estate lawyers who specialize in real estate law.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
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Scott S.
Free Consultation New York, NY 17 Yrs Experience Licensed in NY Benjamin Cardozo School of LawScott graduated from Cardozo Law School and also has an English degree from Penn. His practice focuses on business law and contracts, with an emphasis on commercial transactions and negotiations, document drafting and review, employment, business formation, e-commerce, technology, healthcare, privacy, data security and compliance. While he's worked with large, established companies, he particularly enjoys collaborating with startups. Prior to starting his own practice in 2011, Scott worked in-house for over 5 years with businesses large and small. He also handles real estate leases, website and app Terms of Service and privacy policies, and pre- and post-nup agreements.
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Principal Attorney Free Consultation Member Since:October 11, 2022
Ryenne S.
Principal Attorney Free Consultation Chicago, IL 14 Yrs Experience Licensed in IL DePaul University College of LawMy name is Ryenne Shaw and I help business owners build businesses that operate as assets instead of liabilities, increase in value over time and build wealth. My areas of expertise include corporate formation and business structure, contract law, employment/labor law, business risk and compliance and intellectual property. I also serve as outside general counsel to several businesses across various industries nationally. I spent most of my early legal career assisting C.E.O.s, General Counsel, and in-house legal counsel of both large and smaller corporations in minimizing liability, protecting business assets and maximizing profits. While working with many of these entities, I realized that smaller entities are often underserved. I saw that smaller business owners weren’t receiving the same level of legal support larger corporations relied upon to grow and sustain. I knew this was a major contributor to the ceiling that most small businesses hit before they’ve even scratched the surface of their potential. And I knew at that moment that all of this lack of knowledge and support was creating a huge wealth gap. After over ten years of legal experience, I started my law firm to provide the legal support small to mid-sized business owners and entrepreneurs need to grow and protect their brands, businesses, and assets. I have a passion for helping small to mid-sized businesses and startups grow into wealth-building assets by leveraging the same legal strategies large corporations have used for years to create real wealth. I enjoy connecting with my clients, learning about their visions and identifying ways to protect and maximize the reach, value and impact of their businesses. I am a strong legal writer with extensive litigation experience, including both federal and state (and administratively), which brings another element to every contract I prepare and the overall counsel and value I provide. Some of my recent projects include: - Negotiating & Drafting Commercial Lease Agreements - Drafting Trademark Licensing Agreements - Drafting Ambassador and Influencer Agreements - Drafting Collaboration Agreements - Drafting Service Agreements for service-providers, coaches and consultants - Drafting Master Service Agreements and SOWs - Drafting Terms of Service and Privacy Policies - Preparing policies and procedures for businesses in highly regulated industries - Drafting Employee Handbooks, Standard Operations and Procedures (SOPs) manuals, employment agreements - Creating Employer-employee infrastructure to ensure business compliance with employment and labor laws - Drafting Independent Contractor Agreements and Non-Disclosure/Non-Competition/Non-Solicitation Agreements - Conducting Federal Trademark Searches and filing trademark applications - Preparing Trademark Opinion Letters after conducting appropriate legal research - Drafting Letters of Opinion for Small Business Loans - Drafting and Responding to Cease and Desist Letters I service clients throughout the United States across a broad range of industries.
