An exclusive agency listing is a real estate contract whereby the owner of a property appoints a single real estate broker as his or her exclusive agent.
Under this type of listing, the seller can only list the property with one broker until the listing expires or the property is sold.
An exclusive agency listing only guarantees a broker commission if the listed property sells through a real estate agent or real estate company.
However, if the owner of the home finds a willing buyer without the assistance of a broker, the broker will not be eligible for any commission.
This is a huge turn-off to real estate agents, namely because buyers and sellers sometimes work out deals that cut out of the middleman.
That’s why it’s typical for a broker to charge an upfront fee, although they may settle for a reduced commission if the property sells.
And brokers may not bother listing your property on the MLS or spend much time or money marketing the property.
This type of listing is also referred to as an “exclusive listing” or “exclusive agency,” and differs from an open listing in that only one broker can represent the seller.
Be sure not to confuse an “exclusive agency listing” with an exclusive right to sell listing, with the latter being a much more common listing.