What does an Exclusive Agency Agreement specify?

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An Exclusive Agency Agreement specifies that the seller retains the right to find a buyer for their property without incurring a commission fee to the agent, provided they secure the sale themselves. This form of agreement allows the seller to market the property independently, which can be appealing if they believe they can effectively attract buyers on their own. However, if the agent does find a buyer during the term of the agreement, the seller will owe the agent a commission. This structure creates a relationship where the agent is motivated to find buyers while also giving some control back to the seller.

Other interpretations of agency agreements would not capture the nuances of the exclusive agency. Agents generally do not have a guaranteed commission regardless of who finds the buyer, as this is characteristic of an exclusive right-to-sell agreement instead. Additionally, agencies and agents are inherently involved in the sale through exclusivity arrangements, which clearly rules out the notion that no agents can be involved in the process.

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