Definition - What does Exclusive Listing mean?
An exclusive listing is a legal agreement made between the seller of a house/property and the realtor who is acting on their behalf to sell the house/property, where a certain realtor has a legal right over the commission on the sale of a specific property. Such an agreement is agreed between the realtor and is agreed for the purpose of giving the realtor an incentive to sell the property at the highest price and as soon as possible. Exclusive listings usually have a term length of between 3–6 months, and even if a seller finds a buyer for the property without the help of a realtor, they will still need to pay some type of commission to the realtor.
Justipedia explains Exclusive Listing
An exclusive agreement is made on a home of higher value, where there can be a drastic difference between the desired and the selling price. In order to gain the highest amount possible, the buyer chooses to incentivize the realtor and it is in both parties' best interests to sell the house at the highest possible price.