DEFINITION of 'Exclusive Listing'

A real estate sale transaction in which a specified real estate agent stands to gain a commission if a property sells within a specified number of months, no matter how a buyer is found. The purpose of an exclusive listing is to motivate the agent to sell the property quickly and at the highest price possible. However, if a homeowner signed an exclusive listing agreement with an agent and also placed an ad for the property, and if the buyer found out about the property from the ad, the real estate agent would still earn a commission unless the seller has also established exclusive agency (the right of the seller to sell the property himself and avoid paying a commission despite the exclusive listing agreement).

BREAKING DOWN 'Exclusive Listing'

The exclusive listing agreement may also provide for a protection period to prevent the seller from abusing the agreement to avoid paying a commission and to reward the agent for doing his job. The protection period would allow the agent to still receive full commission after the expiration of the agreement if a potential buyer the agent brought to the house during the listing period came back later and decided to complete the purchase.

RELATED TERMS
  1. Extender Clause

    In real estate, a provision of an exclusive listing agreement ...
  2. Real Estate Agent

    A person with a state/provincial license to represent a buyer ...
  3. Open Listing

    A property listing that uses multiple real estate agents in order ...
  4. Listing Agreement

    A document in which a property owner (as principal) contracts ...
  5. For Sale By Owner - FSBO

    A method of selling property without the use of an agent or broker. ...
  6. Captive Agent

    An insurance agent who only works for one insurance company. ...
Related Articles
  1. Investing

    How Do Real Estate Agents Get Paid?

    Here's how real estate commissions on home sales really work. And, yes, they're negotiable.
  2. Investing

    Understanding Real Estate Commissions: Who Pays?

    When you set out to buy or sell a house, one factor worth considering is the real estate agent's fees.
  3. Investing

    How Real Estate Agent and Broker Fees Work

    Buying or selling a home? What you need to know about real estate agent and broker fees.
  4. Investing

    How Real Estate Agents Get Paid

    Most real estate agents are paid a percentage of the property’s selling price, which is called a commission.
  5. Investing

    Do You Need A Real Estate Agent?

    There's no guarantee that realtors will act in your best interest, but it may be worth hiring one anyway.
  6. Financial Advisor

    A Day In The Life Of A Real Estate Agent

    While every day is unique for a real estate agent, there are some activities that may be a typical part of an agent's day.
  7. Investing

    Finding A Good Real Estate Agent

    Don't go it alone in the real estate market. We'll show you how to find the help you need.
  8. Investing

    Would You Make A Good Real Estate Broker?

    How to tell if you'd be good in this field. It is a common second career for many people, but isn't a good match for everyone.
  9. Investing

    Commercial Real Estate Agent: Job Description & Average Salary

    Learn more about the qualifications, daily and regular responsibilities, and average yearly salaries of commercial real estate agents.
RELATED FAQS
  1. Do real estate agents get paid hourly or by salary?

    Learn about real estate commissions and how real estate agents, including listing agents, buyer's agents and real estate ... Read Answer >>
  2. How can I tell when a real estate agent might be lying to me?

    Find out what real estate agents are likely to lie about, the reasons for the lies and how to protect yourself from unscrupulous ... Read Answer >>
  3. How do real estate agents get listings?

    Learn about how real estate agents get listings in top real estate markets, as well as in smaller areas, through utilizing ... Read Answer >>
  4. How do real estate agents market themselves?

    Find an agent by checking popular real estate circulars featuring desirable neighborhoods and call the agent to ask questions ... Read Answer >>
  5. Can real estate agents help renters find rental property?

    Real estate agents offer renters a true advantage when searching for a new home as well as negotiating power when signing ... Read Answer >>
  6. Do real estate agents work on weekends?

    Learn how working weekends and evenings is one way real estate agents increase their chances of making a sale to a potential ... Read Answer >>
Hot Definitions
  1. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  2. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  3. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  4. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  5. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  6. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
Trading Center