What is meant by "exclusive right to sell" in real estate?

The concept of "exclusive right to sell" refers to a situation where only one broker is given the authority to sell a property. This arrangement means that the seller cannot list the property with multiple brokers at the same time; instead, they enter into a contract with a single broker who has the sole right to market and sell the property.

With an exclusive right to sell agreement, regardless of who ultimately finds the buyer—whether it be the broker or the seller themselves—the broker is entitled to a commission upon the sale of the property. This arrangement tends to incentivize brokers to invest more resources into marketing and selling the property because they know they will receive compensation if the property sells during their period of exclusivity.

The other options present different scenarios that do not align with the exclusive right to sell arrangement. For example, allowing multiple brokers would instead describe a non-exclusive or open listing. The assertion that it allows sellers to avoid paying any commissions is incorrect, as commissions are still required under this agreement; the broker will receive payment regardless of the sales effort. Lastly, the idea that it guarantees a minimum price does not apply, as the agreement focuses more on the exclusive rights granted to the broker rather than pricing guarantees for the seller.