What is an exclusive broker agreement?

An exclusive broker agreement is a contract in which a buyer agrees to work exclusively with a particular real estate broker or agent in their search for a property. This arrangement legally binds the buyer to that specific broker for a defined period, meaning the buyer cannot engage another broker to represent them during this time.

This type of agreement is beneficial for brokers as it provides them with a guaranteed client relationship and an opportunity to earn a commission on any transaction that results from their efforts. The exclusivity also incentivizes the broker to dedicate resources and prioritize the buyer’s needs, knowing that they cannot lose the client to a competing agent during the agreement's term.

In this context, options related to selling only to exclusive buyers, limiting commissions, or allowing multiple brokers do not accurately describe the nature of an exclusive broker agreement. They do not capture the essence of an exclusive commitment from the buyer to a single broker, which is central to this type of contract.