What is 'Exclusive Right To Sell' on California Listing Agreement?

What is 'Exclusive Right To Sell' on a California Listing Agreement?

Or Also Known As An 'Exclusive Authorization and Right To Sell'

Before I get into a layman's term explanation of what an Exclusive Right To Sell Listing option is, here's a few official definitions:

Exclusive Right To Sell Listing (According to the RELMARK Real Estate Glossary): A listing agreement employing a broker to act as agent for the seller of real property under the terms of which the broker is entitled to a commission if the property is sold during the duration of the listing through another broker or by the owner without the services of an agent.

Here's another:

Exclusive Right To Sell Listing ( According to Barron's Dictionary of Real Estate Terms): Employment contract giving the BROKER the right to collect COMMISSION if the property is sold by anyone, including the owner, during the term of the agreement.

So What Does This All Mean?

Basically, there are different ways to list a property with an agent/broker (And by the way, anytime you work with a real estate agent, you're also working with their employing broker). Since we are focusing on the Exclusive Right To Sell, we'll just list the most used other options:

• Open Listing
• Net Listing
• Exclusive Agency Listing
• Multiple Listing Agreement

The basic explanation of the Exclusive Right To Sell Listing option allows the agent/broker to list the property or home for sale, and no matter who or how the real estate sells, the agent/broker is entitled to the commission detailed in the Listing Agreement. Does this sound unfair to you as a seller? It shouldn't, and here's why:

First, if you were knowledgeable enough in the real estate transaction to represent yourself, you would sell it yourself from the beginning. That's no knock on the intelligence of you or any seller of real estate, but this is what we as real estate professionals do. If you're a mechanic, you know far more than I do about my car, and I really have no place getting under the hood. No matter what you do for a living, I'm damn sure you can do it better than me. Same goes for our profession and we at Garrigus Real Estate pride ourselves on our real estate knowledge and experience.

No matter where or how the buyer comes to the sale, your real estate agent/broker still represents you, still owes you due diligence, still negotiates the deal in your best interests as long as your agent/broker is worth their weight in salt. They are still employing their knowledge and experience to protect and benefit you in the sale.

Second, your agent/broker should already have advertised and marketed your property for sale extensively. Everything from Internet marketing and advertising, traditional advertising, and even signs and open houses goes into exposing your home for sale to as many buyers as possible. That is the only way to ensure you get the best offer on the property the open market will allow.

Many times you or your agent won't even know where your buyer first saw the ad of your home for sale. Most times the buyer doesn't know either because they can't remember! If they do remember, the ad or marketing tool that brought them to the sale was probably launched by your agent/broker. And even if they see the real estate sign in your front yard and stop and talk to you, not your agent, did not the actions of your agent/broker STILL procure the buyer? Yes, because they installed the sign, or had it installed. This scenario is simplifying things a bit, but it highlights my point.

Also, the Exclusive Right To Sell Listing option is widely the most used option for selling homes and real estate. Why?

Well, obviously it does benefit the agent/broker and protect them from working towards selling your home or property and then realizing no commissions if it sells. But it also calms the chaos that other options can cause if the other options aren't used appropriately.

Are there situations where a different listing option works better for the deal? Absolutely, but these options should explored extensively by the seller independently, and with their agent/broker, before knee-jerking.

But the Exclusive Right To Sell Listing option also benefits the seller too. Other options could and can call for the seller to handle their own marketing or advertising, handle their own negotiations, be responsible for all disclosures and use of all correct forms and documents, or be responsible for any other duty a real estate agent/broker is traditionally responsible for.

The Exclusive Right To Sell option benefits the sellers of real estate, while ensuring that a real estate agent and his or her broker earns their commission for working toward, and selling the real estate property.