Exclusive Right to Sell Listing Agreement: Should I Sign One?

Planning on listing your home? Before you sign anything, make sure you understand the exclusive right to sell — the most common (and misunderstood) real estate agreement.

Exclusive right to sell listing agreements are a type of selling agreement that gives one realtor the sole right to sell your home. These agreements typically last around 3-6 months, but you can often negotiate the terms.

When you sell under this agreement, your realtor markets your home on the multiple listing service (MLS) and earns the selling commission on your home. Even if you find the buyer, your realtor earns their listing fee.

Keep reading if you need help deciding if an exclusive right to sell agreement is right for you, or if you want to consider an alternative.

What is an exclusive right to sell?

An exclusive right to sell agreement is a contract between you and one real estate agent. In this contract, you agree to let your agent (and only your agent) sell your home and make a commission.

If you find a buyer for the home, your agent will still make the commission as long as you are under contract with them.

Exclusive right to sell agreements are the most common listing agreements in the industry, but they aren’t your only option if you want more flexibility when selling.

Pros and cons

While a locked-in commission to one agent may seem like a drawback on the surface, agreeing to the exclusive right to sell comes with perks like:

• Being able to rely on your realtor’s marketing expertise and know-how
• More motivated agents who know they are earning a commission
• Increased access to a larger buying network that you can’t get alone
• Not worrying about dealing with multiple agents or a team-selling structure

In addition to paying commission, even if you find a buyer, some other drawbacks of selling through an exclusive right to sell agreement include:

• You are stuck with your agent, even if they don’t perform well
• Cancelling the contract is often challenging (depending on the terms)

Ultimately, an exclusive right to sell agreement is one of the most common listing agreements for a reason.

Agreeing to sell through one agent signals that you trust them to perform their job, and it motivates them to get the most for your sale because they know they will make a commission on your home.

What to look for

Most agents use a listing agreement template provided by their brokerage or their state’s real estate commission.

Your listing agreement may not explicitly state “Exclusive Right to Sell” in bold letters at the top, so it’s essential to keep your eye out for a clause that reads like this when reviewing your listing agreement:

Here are a few more details you should look for when reviewing an exclusive right to sell listing agreement:

💰 Listing Agent Commission

Exclusive right to sell agreements outline what you’ll pay your realtor when it’s time to close on your home. Typically, it’s 2% to 3% of the sale price, but you can get a better rate if you negotiate well (or if you work with a discount broker).

💸 Buyer’s Agent Commission

You are often responsible for covering some (or all) of the buyer’s agent commission when you sell a home. However, after a 2024 ruling against the National Association of Realtors (NAR), you may not have to pay the buyer’s agent.

It’s important to carefully review clauses about buyer’s agent commission to see what amount of the buyer’s agent commission you are responsible for.

⏰ Duration of the Agreement

Most exclusive right to sell contracts span 3 to 6 months, but the terms can vary depending on the market. Agents in hot markets may make the term shorter to stay competitive.

If your agent asks for more than 12 months, this could be a red flag. Longer terms may have an adverse effect on your agent’s incentive to sell quickly.

🤝 Owner’s Duty

Your listing contract will define any tasks you need to perform as part of the listing process as the property owner. A couple of examples of the owner’s duties include:

• Allowing buyer’s agents access to the property for showings and inspections
• Agreeing to comply with your state’s Fair Housing laws

✔️ Permissions

An exclusive right to sell agreement highlights what you allow your agent to do to the property to market your home. Some of these permissions may include:

• Placing a lockbox on the front door
• Adding a “for sale” sign on the property
• Taking pictures to market online
• Showing the home to potential buyers

You must also give your agent permission to enter the property into the MLS in the permissions section of your contract.

🔒 Lockbox Authorization

You may see a specific lockbox authorization clause in your contract. This clause allows buyer’s agents to access your home for showings (with or without you present) and discloses that the realtors are not responsible for any damage to the property.

🕞 Extension Period

After the agreement expires, your agent may still earn a commission if one of their potential buyers purchases the property. In this case, your agent still follows through with their duties to facilitate the sale of your home.

📹 Surveillance

Your listing agreement may include a clause about disclosing video surveillance in your home to people entering your property. It’s essential to review this section carefully to ensure you follow the rules if you have a security system.

Exclusive agency vs. exclusive right to sell

Exclusive Agency Listings are alternatives to Exclusive Right to Sell Agreements. However, these listings allow you to find a buyer and avoid commission.

Here’s how the two options stack up against each other:

If you’re confident you can find a buyer yourself (and you’re willing to do the work), an exclusive agency agreement might save you money.

But it’s unlikely your agent will offer this agreement type because they can miss out on commission after putting hard work into marketing your home.

Can I cancel?

You’re not stuck — even if you’ve signed. But some agreements are easier to leave than others, depending on their terms.

Here’s what Kevin Capra, a Compass Real Estate Realtor® from Parker, CO, has to say about leaving an agreement:

“In most cases, yes. Common reasons include lack of performance, poor communication, or mutual agreement. The contract should protect everyone, but if it’s not working, there’s usually a way out.”

While you are technically locked in for the listing period, getting out of a listing agreement simply by asking your realtor to cancel is possible. And you often need to request a cancellation in writing to create a paper trail of your cancellation.

If you feel like ending your contract is the best way forward, it’s essential to approach the situation professionally.

Drafting an email similar to the one below may be a good place to start:

Subject Line: Request to Terminate Exclusive Right Agreement Dear [Agent Name], I hope you’re doing well. I’m writing to formally request an early cancellation of our Exclusive Right to Sell Agreement for my property at [Insert Address], signed initially on [Date]. While I greatly appreciate the effort you have put into marketing my home and the professionalism you have demonstrated, I would like to explore other selling options. I understand the terms of our agreement and request your guidance on taking the proper steps to dissolve our contract amicably. Please let me know what next steps are needed to finalize the termination. I want to ensure a smooth and professional conclusion for both parties. Thank you for your time and understanding. [Your Full Name] [Your Contact Info

Other types of listing agreements

» READ: What Is An Open Listing? (And How Does It Work?)

Commission changes

The settlement of a NAR lawsuit in 2024 restructured how buying and selling agents get paid. Here’s a breakdown of how the commission structure changes:

• Before the lawsuit: Sellers typically paid selling and buying agent commissions
• After the lawsuit: Buyers must negotiate realtor fees with their agents

Why it matters: While buyers must negotiate fees, some selling agents may add more disclaimers in listing contracts to stay competitive. This could mean that new agreements may include clauses that:

• Require sellers to pay some (or all) of the buyer’s commission to bring more buying agents to the table
• Pay a different commission based on who finds the buyer — i.e., 5% if another agent brings the buyer, 4% if the listing agent brings the buyer, 3% if the seller finds the buyer
• Offers closing credits or includes home warranties (paid by the seller) to buyers who purchase through your real estate agents

Next steps

Your next steps include looking for an exclusive agent who can walk you through the various types of listing agreements, the local market, and the home sales process, as well as your needs and goals as a seller.

Not sure what kind of listing agreement is best for you? Clever Real Estate has your back! The matching service can connect you with top-rated agents who will explain your options and help you compare — no pressure, no obligation. Take a short quiz to get started today!

Frequently asked questions