What is a Real Estate Exclusivity Agreement?

The real estate exclusivity agreement is a formal agreement between a property owner and a real estate agency, by which the latter is granted the exclusive right to manage the sale or rental of a property for a specified period. During that time, only the selected agency can market the property, although the owner remains the titleholder.

This type of contract raises many questions, especially regarding its possible cancellation, duration, obligations, and rights of each party. Below, we explain the key points to consider if you are facing a real estate exclusivity agreement.

What Does a Real Estate Exclusivity Agreement Consist of?

When you sign an exclusivity agreement with a real estate agency, you are agreeing that during a specific period (usually between 3 and 6 months), you will not hire any other agency to sell or rent your property. That is, only that real estate agency can handle the marketing of your home.

In exchange for this exclusivity, agencies usually offer personalized services and greater dedication to ensure the success of the transaction. This practice is not mandatory, but it is quite common in the sector.

Can a Real Estate Exclusivity Agreement be Canceled?

Yes, a real estate exclusivity agreement can be canceled, but it must be done following the conditions agreed upon in the document. Often, these types of contracts include penalty clauses if the exclusivity is breached before the agreed term.

It may also happen that the owner wants to cancel the exclusivity agreement with a real estate agency for justified reasons, such as poor management by the agency, lack of transparency, or failure to provide the promised services. In these cases, it is important to review the contract and, if necessary, consult with a legal professional.

Terminating a Real Estate Exclusivity Agreement Due to Non-Renewal

One of the most common scenarios is terminating a real estate exclusivity agreement due to non-renewal. Once the agreed term ends, the contract may expire automatically if a tacit renewal has not been stipulated. This allows the owner to decide whether to continue with the same agency or open the possibility to other sales or rental channels.

It is essential to review the renewal conditions and notice periods included in the contract to avoid misunderstandings.

Jurisprudence on the Real Estate Exclusivity Agreement

The jurisprudence on the real estate exclusivity agreement includes various cases in which the courts have intervened to resolve conflicts between owners and agencies. In most of them, abusive clauses, lack of transparency, or breaches by one of the parties are assessed.

These judgments can serve as a reference in case of disagreement or doubt, although it is best for the contract to be clear, balanced, and adapted to current regulations.

Transparent Real Estate Management with Espígul

At Espígul, we know that trust is key when managing the sale or rental of your home. Therefore, if you opt for a real estate exclusivity agreement, we offer you a completely transparent, close, and personalized service. We will accompany you throughout the entire process, with clear information and the attention you deserve.

If you have questions about terminating a real estate exclusivity agreement due to non-renewal, want to know if a real estate exclusivity agreement can be canceled, or want to better understand the jurisprudence on the real estate exclusivity agreement, our team is here to help you. Do not hesitate to contact us!