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

The distinction between "exclusive right to sell" and "exclusive agency" listings lies in how commissions are structured and the rights granted to the broker.

In an exclusive right to sell listing, the broker is guaranteed a commission regardless of who finds the buyer. This means that even if the seller directly attracts a buyer without the broker’s assistance, the broker is still entitled to their commission. This arrangement incentivizes the broker to actively market the property, knowing their commission is secure.

On the other hand, in an exclusive agency listing, the seller retains the right to sell the property themselves and in such a case would not owe a commission to the broker. The broker in an exclusive agency setup only earns a commission if they are the ones who actually bring in the buyer.

This difference highlights why the exclusive right to sell listing guarantees a commission for the broker, regardless of the source of the buyer, making it a more secure arrangement for real estate professionals.