What is an excluded prospect in a real estate context?

In the context of real estate, the term "excluded prospect" refers specifically to a buyer who has been procured by the seller themselves rather than through the efforts of the agent. This means that the agent does not receive any commission or compensation for the transaction involving that buyer, as the seller has independently secured the buyer’s interest in purchasing the property. This distinction is important within agency agreements, which often stipulate who is eligible to be represented by the agent and what constitutes a valid transaction for earning a commission.

The other options do not accurately describe the concept of an excluded prospect. A buyer the agent is not allowed to approach could pertain to a variety of legal or ethical scenarios but does not specifically convey the relationship with the seller's actions. A client who has not signed a contract lacks any formal representation and does not pertain to the concept of an excluded prospect. Similarly, a prospect who has already purchased property is no longer a potential buyer, thus falling outside the scope of what an excluded prospect represents. Hence, the concept of an excluded prospect is best defined by the situation where the seller independently brings a buyer to the transaction.