What characterizes an Exclusive Right to Sell agreement?

An Exclusive Right to Sell agreement is characterized by the seller's obligation to pay a commission to the broker regardless of who ultimately sells the property. This means that even if the seller finds a buyer on their own or if someone else facilitates the sale, the broker still earns their commission. This type of agreement ensures that the broker has a guaranteed financial incentive to market the property aggressively, as they are assured payment for their services upon the successful sale of the property.

The nature of this agreement creates a strong commitment between the seller and the broker, providing the broker with full agency rights to sell the property. It is designed to encourage brokers to invest time and resources into marketing the property, knowing that their efforts will be compensated.

In contrast to other options, the Exclusive Right to Sell agreement does not allow the seller to keep their previous broker nor does it completely prevent the seller from seeking buyers independently. It also does not involve the broker paying the seller any fee, as the commission structure is oriented toward compensating the broker for their work and resources spent during the selling process.