Exclusive Listing


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.

  1. Real Estate

    Land plus anything on it, including buildings and natural resources.
  2. Extender Clause

    In real estate, a provision of an exclusive listing agreement ...
  3. Multiple Listing Service (MLS)

    A service provided by a group of real estate brokers. They band ...
  4. Commission Broker

    Someone who gets paid by the brokerage company for which he works ...
  5. Commission

    A service charge assessed by a broker or investment advisor in ...
  6. Open Listing

    A property listing that uses multiple real estate agents in order ...
Related Articles
  1. Home & Auto

    Do-It-Yourself Projects To Boost Home Value

    These simple projects can add value to your property without taking too much out of your wallet.
  2. Home & Auto

    Closing A Real Estate Deal In A Down Market

    We provide top tips on how to help sell your home in a rough market.
  3. Home & Auto

    10 Tips For Getting A Fair Price On A Home

    Don't let buying a home bust your budget. Make sure the house you choose is worth the price you pay.
  4. Home & Auto

    How To Stage Your Home For A Quick Sale

    Learn how to make your house appealing to the largest number of buyers and increase your chances at a fast sale.
  5. Home & Auto

    7 Absolute No-Nos When Selling a Home

    Avoid these mistakes if you’re looking to make a quick and easy home sale.
  6. Home & Auto

    5 Mistakes That Make House Flipping A Flop

    If you're just looking to get rich quick, you could end up in the poorhouse.
  7. Investing

    What Is a REIT and Does It Belong in My Portfolio?

    Real estate investment trusts offer a unique way for investors to own a real estate portfolio without the risks of owning single properties.
  8. Professionals

    Becoming a Real Estate Agent Or Mortgage Broker

    Considering a career as either a real estate agent or a mortgage broker? Here are some factors that might help you choose between them.
  9. Home & Auto

    12 Steps To Closing A Real Estate Deal

    Before that new house officially becomes yours, there’s a long list of things you’ll need to accomplish during the closing process.
  10. Investing Basics

    8 Numbers For Evaluating A Real Estate Investment

    Having a strong grasp of a real estate investment’s finances can mean the difference between a lucrative position and possible bankruptcy.
  1. How is market value determined in the real estate market?

    Anyone who has ever tried to purchase or sell a home has probably heard a lot about the property's fair market value, or ... Read Full Answer >>
  2. What is the difference between adjusted and regular funds from operations?

    While regular funds from operations measures the cash flow generated by the operations of a real estate investment trust ... Read Full Answer >>
  3. What are examples of typical leasehold improvements?

    Typical leasehold improvements include partitioning a large, open space into smaller, more structured areas such as dressing ... Read Full Answer >>
  4. How much of the global economy is comprised of the real estate sector?

    The commercial and residential real estate industry generated an estimated $3 trillion in 2014, with some 35% of sector revenue ... Read Full Answer >>
  5. What is the process for a building owner depreciating leasehold improvements in a ...

    As long as the building owner is the person or entity that provides leasehold improvements, then the owner can depreciate ... Read Full Answer >>
  6. How can I invest in tax liens?

    An individual can invest in tax liens by identifying available liens and then participating in auctions where property tax ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Take A Flier

    The slang term for a decision to invest in highly speculative investments.
  2. Bar Chart

    A style of chart used by some technical analysts, on which, as illustrated below, the top of the vertical line indicates ...
  3. Take A Bath

    A slang term referring to the situation of an investor who has experienced a large loss from an investment or speculative ...
  4. Black Friday

    1. A day of stock market catastrophe. Originally, September 24, 1869, was deemed Black Friday. The crash was sparked by gold ...
  5. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  6. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ...
Trading Center