What describes an agency agreement that allows sellers to procure the buyer themselves?

An exclusive agency agreement is a type of listing contract where the seller retains the right to sell the property independently without having to pay a commission to the agent, provided that the agent did not procure the buyer. This means that if the seller finds a buyer on their own, they can avoid paying the commission owed to the broker. However, if the broker does find a buyer, the seller must pay the agreed-upon commission.

This arrangement offers some flexibility to the seller, allowing them to actively seek out potential buyers while also incentivizing the agent to market the property effectively. This balance between seller initiative and broker responsibility distinguishes exclusive agency agreements from other types of agreements, such as exclusive right to sell, where the broker receives a commission regardless of who sells the property.

Understanding the specifics of each type of agency agreement is crucial for real estate professionals and sellers, as it impacts how they approach the sale and what financial obligations they may incur.