What Is an Exclusive Real Estate Brokerage Agreement? Pros, Risks, and a Checklist Before You Sign
Selling a house or condo through an exclusive agent (“Exclusive” listing) is becoming increasingly common because it helps keep the sale process structured, assigns one clear party responsible, and reduces the confusion caused by duplicate listings across multiple channels. However, this type of contract typically involves stronger binding terms than an open listing. If you do not review the details carefully, disputes may arise—especially around commission and contract termination.
1) Meaning of an “Exclusive Brokerage Agreement”
In practice, an Exclusive Listing Agreement is a contract in which the property owner appoints one specific agent with the exclusive right to market and sell the property for a specified period, and the owner agrees not to appoint other agents during that term.
In Thailand, this is often referred to as a “closed listing agreement”, commonly used in two main forms:
Exclusive Right to Sell (All parties)
Exclusive Agency (Agent-only)
2) Types of Exclusive Agreements: The Key Difference Is “Can the Owner Sell It Themselves?”
Before signing, the most important point is to confirm which type of Exclusive agreement it is, because it directly affects the agent’s right to claim commission.
2.1 “All Parties Exclusive” (Similar to Exclusive Right to Sell)
The owner appoints one agent, and regardless of who finds the buyer (including the owner), the agent is entitled to commission if the sale occurs within the contract term, as defined in the agreement.
2.2 “Agent-Only Exclusive” (Similar to Exclusive Agency)
The owner appoints one agent, but if the owner sells the property by themselves, the owner may not need to pay commission—depending on what the contract explicitly states. This concept is often described as “the owner can still find a buyer without paying commission.”
Quick summary: Before signing, clearly confirm in writing:
“Is this Exclusive Right to Sell or Exclusive Agency?”
“If the owner sells it themselves, is commission still payable?”
3) Legal Principles You Should Know (To Avoid Misunderstanding)
Although an exclusive agreement is a commercial arrangement, its basic framework typically aligns with brokerage principles under the Thai Civil and Commercial Code, such as:
In principle, commission becomes payable when the sale contract is successfully concluded as a result of the broker’s introduction/arrangement (i.e., the broker’s efforts lead to the contract being formed).
A broker does not automatically have implied authority to receive money on the owner’s behalf (e.g., reservation fee/deposit) unless such authority is clearly granted in writing; receiving money without proper authority may create liability to return it under applicable legal principles.
If a broker acts in bad faith or has conflicts of interest, the law may impose limitations on the broker’s rights.
Note: In practice, some exclusive contracts may expand commission-trigger conditions (for example, commission is payable if the property sells during the term regardless of who sourced the buyer). This is why you must read the specific clauses carefully.
4) Benefits of an Exclusive Agreement (Why Many Owners Choose It)
4.1 Clear Accountability and a More Structured Sales Plan
With one lead agent, communication, pricing strategy, marketing execution, and buyer screening tend to be more systematic than in an open listing.
4.2 Fewer “Duplicate Listings” and Inconsistent Information
When multiple agents list the same property, photos, price, and details may differ across channels—reducing buyer confidence. Exclusive structures can reduce this problem.
4.3 Stronger Marketing Commitment from the Agent
The logic of exclusivity is that the agent has more certainty of being compensated upon a successful sale, which can increase the agent’s willingness to invest in photos, promotions, and closing work.
5) Key Risks and Cautions (Read These Before You Sign)
These are common areas that can turn an Exclusive contract into a risk if not clearly defined:
5.1 Commission May Be Due Even If the Owner Finds the Buyer
For Exclusive Right to Sell, the core concept is:
“If the property sells during the contract term, the agent earns commission—regardless of who found the buyer.”
So you must confirm whether the owner accepts this condition.
5.2 When Is Commission “Earned”: At Contract Signing or at Transfer?
The agreement should clearly state what counts as a “successful sale,” such as:
When the sale and purchase agreement is signed / deposit is paid, or
When the ownership transfer is completed at the Land Office
These two triggers can lead to very different outcomes if the deal collapses or financing fails.
5.3 Tail / Protection Period After the Contract Ends
Many contracts include a clause stating that if a buyer who was introduced or shown the property by the agent later purchases the property within X days after the contract ends, the agent may still be entitled to commission.
You should specify:
The duration (X days)
Who qualifies as a protected buyer and what proof is required (e.g., viewing record, buyer list)
5.4 Handling Reservation Fees / Deposits
The contract should specify a safe and traceable payment method, such as:
Transfer to the owner’s account
Escrow arrangement
Cashier’s check payable to the owner
Because an agent does not automatically have authority to receive money on the owner’s behalf unless explicitly granted.
5.5 Termination and Penalties
Confirm:
Can the agreement be terminated early?
How many days’ notice is required?
Are there penalties or compensation fees?
5.6 Advertising and Promotion Costs: Who Pays?
Some contracts require the owner to pay additional advertising costs or allow the agent to deduct marketing expenses from commission. This must be stated clearly.
6) “12-Point Checklist” Before Signing an Exclusive Brokerage Agreement
Use this checklist to review the contract systematically:
Contract type: Exclusive Right to Sell or Exclusive Agency
Contract term + automatic renewal (if any)
Listing price + rules for price adjustments (who approves and when)
Commission rate + calculation base (sale price, appraised value, before/after deductions)
Commission trigger (sale agreement signing vs Land Office transfer)
Tail/Protection period + definition of “protected buyer”
Owner’s right to sell independently (must be explicitly written if allowed)
Minimum marketing plan (pro photos, 3D/video, where listed, ads, reporting frequency)
Co-brokerage policy (can the agent collaborate with other agents?)
Deposit/reservation payment method + supporting documents (reduce risk of “who holds the money”)
Termination, breach, and penalties
Disclosure of conflicts of interest / good-faith obligations (e.g., dual representation must be disclosed and managed clearly)
7) Choosing the Right Exclusive Structure (Practical Guidance)
If the owner wants one responsible team and does not plan to sell personally: Exclusive Right to Sell may fit—provided the owner accepts the commission structure.
If the owner may still sell personally (e.g., already has potential buyers): consider Exclusive Agency, and clearly list any “reserved buyers” (exempt buyers) in the contract.
It is recommended to define sales KPIs in the contract or an appendix (e.g., content output, number of showings, reporting cadence) to make performance measurable.
FAQ: Exclusive Brokerage Agreements
1) How is an Exclusive agreement different from an open listing?
An open listing allows multiple agents; an Exclusive agreement appoints one lead agent for the contract term.
2) Under Exclusive Right to Sell, does the owner pay commission if they sell it themselves?
Typically yes—if the sale occurs during the contract term, commission may be payable regardless of who sourced the buyer.
3) Under Exclusive Agency, can the owner sell independently without paying commission?
Often yes, but only if the contract explicitly states that the owner’s direct sale is exempt.
4) When should commission be considered “earned” to be fair?
The contract should clearly state whether commission is earned at sale agreement signing/deposit payment or at Land Office transfer—this reduces disputes if financing fails or the deal collapses.
5) Can the agent receive deposits on behalf of the owner?
Not automatically. The contract should specify the payment method and grant authority in writing if the agent is to receive money.
6) Why include a Tail/Protection period?
To protect the agent if a buyer introduced during the term returns to purchase shortly after the contract ends; the duration and proof requirements should be clearly defined.
7) If performance is poor, can the owner terminate the contract?
It depends on the contract. It is best to define termination grounds, notice period, and consequences upfront.
References (as cited in the original draft)
RE/MAX Thailand (Exclusive listing agreement definitions and structure)
DDproperty (Closed listing types: “all parties” vs “agent-only”)
Livinginsider (Exclusive appointment and commission implications)
Siam Legal / Thailand Law Library (Broker principles under Thai Civil and Commercial Code)
Bowery & Royce / Bangkok Property (Broker legal concepts and authority considerations)
