What is an "exclusive listing" agreement?

An exclusive listing agreement is a specific type of contract that grants a single real estate broker exclusive rights to sell a property on behalf of the seller. This means that the seller cannot list the property with any other brokers during the term of the agreement. By giving this exclusivity, the broker is incentivized to invest time and resources into marketing and selling the property, knowing that they will receive the commission if the property sells.

This arrangement benefits the seller as well, because it can lead to a more dedicated effort from the broker, potentially resulting in a quicker and more successful sale. The agreement typically outlines the terms of commission, marketing strategies, and duration of the listing.

Other types of agreements, such as verbal agreements or contracts with multiple brokers, do not provide the same level of commitment and effort from the broker. An agreement that allows the seller to retain all offers might imply that the seller has not committed fully to a single broker, which could lead to confusion and lack of accountability in the selling process.