Exclusive Right to Sell Contract Sample

When it comes to selling real estate, a legal agreement is often required to ensure that everyone involved is on the same page. One such agreement is the Exclusive Right to Sell Contract, also known as the Exclusive Listing Agreement. This agreement is a contract between a real estate agent and a property owner, outlining the terms and conditions of the agent`s exclusive right to market and sell the property. In this article, we will provide you with a sample exclusive right to sell contract and explain its key components.

Key Components of the Exclusive Right to Sell Contract

The Exclusive Right to Sell Contract is a detailed legal document that outlines the following key components:

1. Property Description: This section provides a detailed description of the property, including its location, lot size, building type, and other relevant information.

2. Parties Involved: This section identifies the parties involved in the contract, including the property owner and the real estate agent.

3. Listing Period: This section specifies the duration of the agreement and the start and end dates of the listing period. Typically, this period is around six months, but it can vary depending on the agreement between the parties.

4. Commission Rates: This section outlines the commission structure for the real estate agent. For example, it may specify that the agent will receive a percentage of the sale price of the property as their commission.

5. Marketing and Advertising: This section outlines the marketing and advertising strategies that the real estate agent will use to promote and sell the property. It may also specify the costs associated with these strategies.

6. Termination Clause: This section outlines the circumstances under which the contract can be terminated by either party, including breach of contract, expiration of the listing period, or mutual agreement.

Exclusive Right to Sell Contract Sample

Below is a sample Exclusive Right to Sell Contract:

1. Property Description: The property located at [insert property address] is a [insert property description, including lot size, building type, number of bedrooms, and bathrooms].

2. Parties Involved: This agreement is made between [insert property owner name] (hereafter referred to as the “owner”) and [insert real estate agent name] (hereafter referred to as the “agent”).

3. Listing Period: The listing period for this agreement will commence on [insert start date] and conclude on [insert end date]. The duration of the listing period is [insert duration, such as six months].

4. Commission Rates: The commission rate for the agent will be [insert commission percentage, such as 5%] of the final sale price of the property.

5. Marketing and Advertising: The agent will promote and advertise the property using the following marketing and advertising strategies: [insert marketing strategies, such as online listings, open houses, and print advertisements]. The costs associated with these strategies will be paid by the agent and deducted from the commission earned from the sale of the property.

6. Termination Clause: This agreement may be terminated by either party if: (a) the other party breaches this agreement; (b) the listing period expires without the property being sold; or (c) both parties mutually agree to terminate the agreement. In the event of termination, any expenses incurred by the agent will be paid by the owner.

In conclusion, an Exclusive Right to Sell Contract is a crucial legal document when selling a property, and it is vital to understand its contents thoroughly. The sample contract provided above should give you a good grasp of the necessary components of the agreement. However, it is still crucial to consult with a real estate attorney or experienced real estate agent to ensure that the contract meets your specific needs.