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Angie, Home Seller in 48009

what is an EXCLUSIVE RIGHT TO SELL LISTING. What does this mean exactly??

Asked by Angie, 48009 Tue May 20, 2008

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Exclusive Right To Sell is an Agency Agreement. Agency: the legal relationship between a principal and his/her agent arising from a contract in which the principal employs the agent to perform certain acts on the principal's behalf. An agent has certain fiduciary duties to the principal, including loyalty. The agent is to act in the best interests of the principal, even when such action is not in the agent's best interests. The Exclusive Right To Sell is the legal document required to be signed by the owner(s) of real property and a licensed real estate broker/agent before the agent/broker can place the property for sale. This document also specifies how the realtor will be compensated. (usually a percentage of sale or listing price at closing). Once the contrct is signed, the agent/broker can place the property on the local Multiple Listing Service (MLS). The MLS is where all the licensed agents in a particular area notify all other agents of a property's availability. It will give specifics including price, number of bedrooms and bathrooms, year built, style of building, lot size, legal description, amenities, condition of property, ownership status, etc.Before doing this, the Listing Agent will run a Title Check on the property to ensure it is marketable. The agent representing the Seller is known as the Listing Agent. The Listing Agent is responsible for advertising and getting the property sold. Advertising usually consists of putting the property on MLS, electronic and print media advertising, regular mail advertising, signage and more. The Listing Agent may also place the property on Agent or Broker's Tour, hold Open Houses, place signage in the yard, network with other realtors who work in that area to find Buyers, and any and all other means the Listing Agent believes will help to get the property sold. Buyers will present their Offer To Purchase through their Buyer's Agent to the Listing Agent who will then present the Offer to the Seller(s). The Buyer's Agent represents the Buyer(s) and will therefore act in their best interests. The Listing Agent will give professional opinion regarding each Offer received to help the Seller(s) determine which Offer they will accept. The Listing Agent will also represent the best interests of the Seller(s) in all negotiations and in coordinating inspections and monitoring of the contract process up to and including Closing.
1 vote Thank Flag Link Wed May 21, 2008
The 3 types of listing agreements below are explained in the web reference I'm providing you below.....
1) Open Listing
2) Exclusive Agency Listing
3) Exclusive Right-to-Sell Listing
1 vote Thank Flag Link Sat May 31, 2008

In New York, Exclusive right to sell means that the agency that list your house has the only right to sell it. In the contract you sign you agree to let them list in the MLS and take offers from other agencies. However they have the exclusive right to sell the listing. Even if you find a buyer you need to direct them through the agency. This is the common way to list. The agent should be able to explain this. If they cannot, you can interview another agent before you sign on. Wish you well.
1 vote Thank Flag Link Wed May 21, 2008
I am not an attorney and I am not giving legal advice, just my own opinion… there got that clear.

There are three types of listing agreements in Colorado: Exclusive right-to-sell, Exclusive Brokerage Listing, and Open Listing. Your state probably doesn't have these same agreements. But they probably have something close. So I hope this is helpful.

Exclusive is the most common, frankly, because most agents are afraid that the seller will cut them out of a commission if they don’t have this agreement. In our Colorado agreement it says that all communication with anyone interested in the property must be done through the listing agent and that no matter how the buyer is found or who found the buyer, the agent will get a commission. If you are new to selling a home, this is the agreement that I recommend because I’ve known times when the seller said something that turned the buyers off.

Exclusive Brokerage Listings are almost identical except for one important point. With this listing if the seller made first (and only) contact with the buyer or in other words if the buyer went directly to the seller to purchase the property and never contacted the selling agent, then the selling agent wouldn’t get paid. You can see how this would scare most agents. I, however, am not most agent. I use this agreement quite frequently, primarily with For Sale By Owners (FSBO’s) who may already have several possible buyers. I know that through my marketing efforts I can bring twenty times more QUALIFIED buyers through a seller’s property then they can and so an Exclusive Brokerage Listing doesn’t scare me.

Open Listings are just that; they are open to anyone. Whoever brings to the seller the buyer that actually closes the transaction is the one who would be paid (or gets to keep) the commission. I’ve used this agreement a time or two, when I wasn’t going to do any marketing and I already had a buyer or two “in my pocket”. I’ve never heard of anyone else using this agreement; and for good reason. What agent is going to spend dozens of hours and thousands of dollars to market a property just to have another agent go right around them and take a buyer directly to the seller, cutting out the “open listing agent”? But the Colorado real estate commission has it available to use if any “special” situations arise.

If you have any further questions or would like more information, please contact me. I hope to hear from any friends you have who are moving to or from Colorado.

Richard Davis, Broker
Web Reference:
1 vote Thank Flag Link Tue May 20, 2008
This means that you are the listing agent and regardless of who brings in the buyer for the property, you will be compensated for the successful sale.

Have a great day!

1 vote Thank Flag Link Tue May 20, 2008
I am new to this arena, so I had to look up the term Exclusive Right to Sell Listing. For anyone that is interested, I found a good definition here…
0 votes Thank Flag Link Sun May 12, 2013
Bottom Line answer, we have the EXCLUSIVE RIGHT to sell/market the property. The listing broker/agent receives compensation regardless of who brings the buyer.
Web Reference:
0 votes Thank Flag Link Tue May 27, 2008
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