A contract signed between a property owner and an agency giving the agency the sole right to lease or sell the property for a specified period of time, usually six months or more. A property owner typically chooses to give an Exlusive Listing to an agency in exchange for the agency dedicating resources, including marketing, PR, and one or more of its best brokers, to promoting the property in the market and to an agreed target profile of tenant. Internationally most new Class A office, warehouse and retail projects are marketed by agencies via Exclusive or Co-Exclusive Listings.
The Listing may give the owner the right to early termination of the agreement if the agency does not apply the agreed resources and/or does not achieve agreed leasing or sales targets.
Under the Exclusive Listing the agency is involved in all transactions, including those orginated by parties other than the exclusive agent, for example by an employee or the owner or another agency. In the latter case the exclusive agent often pays a Fee Split to the agent that brought the prospect to the property. Under an Agency Exclusive Listing, the owner retains the right to work directly with potential tenants or buyers. In this type of listing the agency may receive a reduced fee or no fee on clients they go directly to the owner. Such listings create competition and conflicts of interest between the owner’s team and the agency.