We explain what an exclusive agency agreement is, how it works, how long it lasts and the types of exclusive agreement.

Exclusive Agency Contract

When selling a home, the owner must decide which approach to use, knowing the pros and cons of each.

private sale
use several agents without exclusivity
use one agent exclusively

Some owners are very reluctant to sign an exclusive contract with an estate agent to help them sell the property, while others prefer a professional they trust to handle the sale from the outset.

It's essential to make the best decision for the sale and be convinced of it, because once the process has started it's advisable to be clear about our goal and how we'll achieve it.

As property professionals, we see every day that most people have heard of exclusive agency agreements, but many don't really know how they work, as they don't understand the difference between the services offered by an agent working on an exclusive basis and one that isn't.

What is an exclusive agency agreement?

An exclusive agency agreement is a service contract for a set period in which an estate agent undertakes to carry out all the tasks, paperwork and advertising investment needed to sell a property on behalf of a selling client.

The contract sets out all the terms of the sale, such as the price, the term, the property details, the client's and agency's details, the agent's fees and all the work it will carry out in return to sell the property.

Agents working on an exclusive basis invest heavily in advertising to significantly shorten selling times. In most cases the agent assigns the seller a personal advisor who will handle the sale and management of the property directly and keep the seller informed at all times of every task carried out and the results achieved.

From day one the client must feel and know that the agent is fully committed to selling their home and is using every professional resource at its disposal.

What does selling exclusively mean?

Selling exclusively means entrusting the sale of a property to an estate agent to manage every process, appointment and piece of paperwork, putting all its dedication and professional tools at the service of the client and the sale.

An estate agent has many exclusive resources that a private seller can't have. All of them involve costs for the agent, whose aim is to help its clients sell their homes.

As an owner, you have the right to choose the way of selling that best suits your needs, and if you've decided to sell through an agent, we recommend consulting several before deciding.

You can meet several agents in person and ask about their terms. Each agent has its own terms and way of working. Ideally you should weigh up your options and hire the agent you trust and believe can best help you sell your home.

How does an exclusive agency agreement work?

An exclusive agreement basically rests on two pillars: commitment and legality.

Commitment, because it undoubtedly involves a great commitment from both the client and the agent. From the agent, because it undertakes to carry out every task needed to sell the property, applying all its effort, knowledge, time and financial investment to satisfy the client, knowing the client trusts its work and has entrusted it with the sale for a set period.

In most cases agents work on a no-sale, no-fee basis, which means they only charge their fees if they do their job well and manage to sell the property.

Knowing this, the agent is just as keen as the owner for the home to sell, and both are committed to making it happen.

The second pillar is legality. Everything must be properly set out in the exclusive contract to avoid misunderstandings and problems. Both parties must honour the contract and respect what's been agreed for their mutual benefit.

How long does an exclusive agency agreement last?

There's no limit on the length of an exclusive agreement; it must be agreed between the client and the agent. At Valoracasa Estate Agents we advise our clients that the right term is between 3 and 6 months. That's more than enough time to sell a property and for the owner to achieve their goal.

Most agents include a clause in their contracts stating that if the owner doesn't give at least 15 days' notice before the end, the contract will be automatically renewed.

At Valoracasa Estate Agents we've never had that clause in our contracts. We believe the owner should decide to renew the exclusive agreement only if they want to and are sure, not because they forgot to give notice and feel obliged.

It's clauses like these that confuse and annoy estate agents' clients and make them think negatively of a sector that has been trying for years to improve its image.