Exclusive right to sell listing agreement TN: What is it and why do you need it?

Are you planning to sell your property in Tennessee? Whether you’re selling a home, a commercial space, or a piece of land, it’s important to have a solid listing agreement in place. One of the most common types of listing agreements in Tennessee is the Exclusive Right to Sell Listing Agreement, which we’ll dive into in this article.

What is an Exclusive Right to Sell Listing Agreement?

An Exclusive Right to Sell Listing Agreement is a legal contract between a property owner and a real estate agent or brokerage. This agreement gives the agent or brokerage the exclusive right to sell the property for a certain period of time, typically 90 to 180 days. During this time, the owner cannot sell the property independently or through another agent, as the exclusive right to sell belongs solely to the agent or brokerage listed in the agreement.

Why do you need an Exclusive Right to Sell Listing Agreement?

1. Access to a wider audience

By signing an Exclusive Right to Sell Listing Agreement, you’re granting your agent or brokerage the authority to market and advertise your property to a wider audience. They can list the property on multiple listing services (MLS), post it on their website, and use other marketing tactics to attract potential buyers.

2. Professional representation

Working with a professional real estate agent or brokerage can help you navigate the complex legal and financial aspects of selling your property. They can provide valuable guidance, negotiate on your behalf, and ensure that the transaction proceeds smoothly.

3. Incentive to sell

Since the agent or brokerage has exclusive rights to sell the property, they have a greater incentive to work hard to sell it. This can lead to a faster sale and a higher sale price.

What should you include in an Exclusive Right to Sell Listing Agreement?

When drafting an Exclusive Right to Sell Listing Agreement, it’s important to include specific details about the property, the commission rate, and the duration of the agreement, among other things. Here are some key elements to consider including:

1. Property information: This includes a detailed description of the property, including its location, size, and features.

2. Commission rate: This outlines the percentage of the sale price that the agent or brokerage will receive as commission for their services.

3. Duration of the agreement: This specifies how long the exclusive right to sell will last, typically 90 to 180 days.

4. Marketing and advertising plan: This outlines the agent or brokerage’s plan to market and advertise the property, including listing it on MLS, using social media, and conducting open houses.

5. Contingencies: These are conditions that must be met before the sale can go through, such as a home inspection or financing approval.

6. Termination clause: This outlines the circumstances in which either party can terminate the agreement before its expiration date.

In conclusion, an Exclusive Right to Sell Listing Agreement can be a valuable tool for property owners in Tennessee who want to sell their property quickly and for a fair price. By granting exclusive rights to a professional real estate agent or brokerage, you can gain access to a wider audience, receive professional representation, and have greater incentive to sell. When drafting your listing agreement, be sure to include specific details about the property, commission rate, and duration of the agreement, among other things.