Legal Definitions - exclusive agency

Definition: Exclusive agency refers to a type of agreement between a seller and a real estate agent where the agent has the exclusive right to sell the property. This means that the seller cannot work with any other agents or sell the property themselves during the term of the agreement.

Example: A homeowner signs an exclusive agency agreement with a real estate agent to sell their house. During the term of the agreement, the agent is the only one who can market and sell the property. If the homeowner finds a buyer on their own, they still have to pay the agent a commission.

Explanation: This example illustrates how an exclusive agency agreement works in real estate. The agent has the exclusive right to sell the property, but the homeowner still has the right to sell it themselves if they find a buyer. However, they would still have to pay the agent a commission if the property sells during the term of the agreement.