What type of contract is typically used by sellers to employ a real estate broker?

The exclusive right to sell contract is the most commonly utilized agreement for sellers to engage a real estate broker. This type of contract grants the broker the sole right to market and sell the property for a specified period. Significantly, no matter how the property is sold—whether through the broker or another means—the broker is entitled to their commission. This arrangement provides a strong incentive for the broker to invest time and resources into marketing the property effectively, knowing they will receive compensation regardless of the outcome.

In contrast, other types of agreements like open listings allow multiple brokers to compete for the sale, but they do not guarantee that a specific broker will receive a commission unless they are the one who brings a buyer. Subagency agreements involve representing a buyer while working under a listing agent’s agreement, which differs from the direct seller-broker relationship established in exclusive rights. Cooperative agreements outline procedures for cooperation between brokers but do not specify contractual obligations in the same way an exclusive right to sell does. Thus, the exclusive right to sell is the clearest choice when considering which contract effectively ties a seller to a participating broker for achieving a sale.