What is the difference between "exclusive right to sell" and "exclusive agency" listing agreements?

The distinction between exclusive right to sell and exclusive agency listing agreements lies in the commission structure and the obligations of the broker involved. An exclusive right to sell agreement guarantees that the listing broker will receive a commission regardless of who actually sells the property. This means that whether the broker finds the buyer or the seller manages to sell the property themselves, the broker is still entitled to the agreed-upon commission.

This feature provides strong incentive for the broker to actively market the property, knowing they will earn a commission regardless of the circumstances surrounding the sale. In contrast, in an exclusive agency agreement, the broker is only entitled to a commission if they are the one who brings a buyer; if the seller sells the property without their assistance, the seller does not owe the broker any commission.

Therefore, the statement that the exclusive right to sell guarantees a commission regardless of who sells the property accurately captures the essence of this type of listing agreement.