What is the difference between and Exclusive Right to Sell listing and an Exclusive Agency listing agreement?
The exclusive right to sell listing is the conventional form of listing submitted to the Multiple Listing Service in that the seller authorizes the listing broker to cooperate with and to compensate other brokers.
“The exclusive agency listing” authorizes the listing broker, as exclusive agent, to offer cooperation and compensation on blanket unilateral basis, but also reserves to the seller the general right to sell the property on an unlimited or restrictive basis. Exclusive agency listings and exclusive right to sell listings. with named prospects exempted, should be clearly distinguished by a simple designation such as a code or symbol from exclusive right to sell listings with no named prospects exempted, since they can represent special risks of procuring cause controversies and administrative problems not posed by exclusive right to sell listings with no named prospects exempted. Care should be exercised to ensure that different codes or symbols are used to denote exclusive agency and exclusive right to sell listings with prospect reservations.
The same Exclusive Right to Sell form can be used for an Exclusive Agency listing. However an addendum to the form must be used to explain the details of commission distribution should the Seller procure the Buyer. An EAL agreement “might” not offer compensation to a Buyers Brokerage. A EAL listing is typically used for ” office only listings” in cases where the Seller may not want to disseminate to the MLS and publish the listing to the Public. However, It can also be used when the Seller wants the option to procure a Buyer. Both the ERS and EAL can be posted on the MLS. An example of this could be as follows: A KW agent lists a property for a Seller and marks the listing as EAL . The listing is published on the MLS. In this case, the Seller can use their efforts to also procure a Buyer. Should the Buyer be procured by the Seller, the commission could be reduced to offset the commission the Seller would normally pay a Buyers agent. The listing agent could collect the Listing Fee and receive a reduced Buyer agent fee, or just not charge the Seller that fee.