How does an exclusive agency agreement differ from an exclusive right-to-sell agreement?

The distinction between an exclusive agency agreement and an exclusive right-to-sell agreement primarily lies in the conditions surrounding compensation to the broker and the seller's rights. An exclusive agency agreement indeed allows the seller to sell the property independently without the obligation to pay the broker a commission, provided the broker did not facilitate the sale. This means that if the seller secures a buyer on their own, they won’t have to pay the broker, which is a key feature of this type of agreement.

In contrast, an exclusive right-to-sell agreement ensures that the broker receives a commission no matter how the property is sold, whether by the broker, the seller themselves, or another agent. This type of agreement provides the broker with a guaranteed commission and incentivizes them to market the property actively.

Understanding these nuances is essential for sellers when deciding the type of listing agreement that best suits their needs and approach to selling their property.