Terms to Know When You’re Dealing with Real Estate - Exclusive Right to Sell

Every professional sector has its distinct terminology which the average layman doesn’t understand. This year, my monthly blog will present real estate terms that a layman can understand so that even the most ‘average bear’ can understand and use to their real estate adventures.

This month’s term is Exclusive Right to Sell

If you’ve ever been presented a detailed listing by a real estate agent, one of the first terms you see is the Exclusive Right to Sell. So what does this phrase mean?

When a property is put up for sale, an exclusive right to sell is formally given to a real estate broker for a specified period of time. In other words, the real estate broker, who is represented by appointed agents, has the sole right to sell the property.  It has a beginning and an ending date which is agreed upon by the property owner and real estate company to sell the property to the buyer.  

It's important to know a couple of caveats here. 

• First, the Broker is the owner/manager of the real estate company. The broker hires agents to represent their interests and it is the broker, not the agent, who is ultimately and legally responsible for the agreement with the seller of the property. 
• Second, the real estate company is the sole company that can sell the property to the buyer.  The buyer may or may not be represented by another agency. 
• Third, if the home is sold during the established period, the broker holding the exclusive right to sell is entitled to compensation for their efforts. 

By Jack Little

Real Estate Advisor