What authority does an exclusive right-to-sell agreement give to the licensee?

An exclusive right-to-sell agreement grants the licensee the authority to negotiate the contract on behalf of the seller. This means the licensee can engage with potential buyers or their agents, negotiate terms, and work towards achieving the best outcome for the seller regarding the sale of the property.

The relationship established by this type of agreement empowers the licensee to represent the seller actively in discussions involving price, terms, and conditions of sale. In doing so, the licensee must adhere to the fiduciary duties owed to the seller, which include loyalty, confidentiality, and full disclosure.

While the licensee may also have input on the list price or make counter-offers, such actions are typically part of the negotiation process, which the agreement directly empowers. Additionally, directing inquiries to the broker may be required in certain scenarios but does not encapsulate the full authority bestowed by this type of agreement.