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

The correct response identifies a key distinction between exclusive agency and exclusive right to sell agreements in real estate. Under the exclusive right to sell agreement, the listing agent is guaranteed a commission no matter who ultimately sells the property—be it the agent, the seller themselves, or another broker. This creates a strong incentive for the agent to market the property vigorously since their commission is assured once the property is sold during the listing period.

In contrast, the exclusive agency agreement allows the seller to retain the right to sell the property themselves and, if they successfully do so without the aid of the agent, they would not owe a commission to the agent. This setup can sometimes lead to less aggressive marketing efforts from the agent because their commission is not guaranteed if the seller sells the property independently.

Understanding this distinction helps clarify the nature of the relationship between real estate agents and sellers, important for making informed decisions about listing agreements in property transactions.