This type of agreement in real estate establishes a contractual relationship where a seller grants a single brokerage the exclusive right to market and sell the property. Under its terms, the brokerage receives compensation if the property sells during the agreement period, regardless of who finds the buyer, with one key exception. If the seller procures a buyer independently, without the broker’s assistance, the seller is generally not obligated to pay a commission to the brokerage. For example, should an owner who signed this agreement find a buyer through personal networking, they retain the right to sell the property without incurring a commission fee to the named brokerage.
The value of this arrangement lies in the focused effort it encourages from the brokerage. Knowing they are the sole representatives, the brokerage is incentivized to invest significant resources in marketing and sales strategies. This can include professional photography, targeted advertising campaigns, and extensive networking within the real estate community. Historically, this structure provided a balance between broker commitment and seller control, offering a path to avoid commission payments if the seller’s efforts led to a sale. The key advantage is the potential savings to the seller while still benefiting from a dedicated marketing approach.
