Exclusive Right vs Exclusive Agency: Understanding the Difference

Are you in the market for a new house, apartment, or any other type of real estate property? As a homebuyer or seller, it's important to understand the different agreements that exist in the real estate industry. Two of the most common agreements are exclusive right and exclusive agency. They may seem similar at first, but they have different terms, legal implications, and obligations. In this blog post, we will explain the difference between exclusive right and exclusive agency real estate agreements.

Exclusive Right Agreement: What is it?

An exclusive right agreement is a legal contract between the real estate agent and the home seller. This agreement gives the agent the exclusive right to sell the property during a specific period. What this means that the agent has the sole authority to market the property, find buyers, and complete the transaction. The seller cannot engage with any other agent or broker. Additionally, will not have to pay any additional fees, even if they find the buyer themselves.

Exclusive Agency Agreement: What is it?

An exclusive agency agreement is another type of contract between the real estate agent and the seller. In this agreement, the seller chooses one agent to exclusively market and sell the property. However, unlike the exclusive right agreement, the seller retains the right to sell the property through their own efforts and without the involvement of the agent. If the seller sells the property themselves, they will not have to pay any commission to the agent.

1. Legal Implications

The exclusive right agreement is the most secure for real estate agents. Real estate agents will get paid regardless of how the property was sold. In contrast, in an exclusive agency agreement, the agent will only get paid if they're the one who introduced the buyer to the property. Otherwise, there is no commission for them.

2. Obligation

With exclusive right, the real estate agent has to put more effort and money into marketing the property since they are guaranteed to earn a commission. The agent will use different tactics to attract potential buyers. Such as advertising, open houses, and online marketing. In the exclusive agency agreement, the agent's efforts are limited because the seller has the option to sell the property themselves.

3. Exclusivity

In an exclusive right agreement, the seller is not allowed to work with any other agent or broker to sell the property. They still can still sell it on their own. An exclusive agency agreement, the seller is allowed to sell the property themselves and only the agent that the seller had selected can market and sell the property.

In conclusion, opting for an exclusive right or exclusive agency agreement has its advantages and disadvantages. An exclusive right agreement is more secure for the real estate agent, and the effort put into marketing the property will be higher. On the other hand, an exclusive agency agreement provides the seller with flexibility and lower commission fees if they sell the property themselves. When deciding which agreement to choose, sellers should consider their personal and financial goals and consult with a real estate expert. By understanding the difference between these two real estate agreements, you will be well-equipped to make the best choice for your situation and get the most out of your sale.

Contact Shawn Wilmoth REALTOR® today for help finding exactly what you're looking for.

www.shawnwilmoth.com