Final answer:
The broker typically has an exclusive agency with a seller client, granting them the sole right to sell the property and collect a commission, with some exceptions depending on the agreement terms.
Step-by-step explanation:
In a real estate context, when a broker collaborates with a seller client, the typical agency formed is an exclusive agency. Under this arrangement, the seller grants the broker the exclusive right to handle the sale of the property, allowing the broker to earn a commission upon a successful sale. The exclusive agency agreement outlines the terms of the collaboration, including the duration of exclusivity.
The defining feature of an exclusive agency agreement is that, if the seller independently finds a buyer without the broker's involvement, the seller may not be obligated to pay a commission. This provision distinguishes exclusive agency agreements from exclusive right-to-sell agreements, where the broker is entitled to a commission regardless of how the buyer is procured.
As the seller's agent, the broker assumes responsibilities integral to the sale process. These duties encompass accurately pricing the property, implementing effective marketing strategies, negotiating with potential buyers, and providing professional advice to facilitate the transaction. The goal is to secure a successful sale that aligns with the seller's objectives.
In return for these services, the seller commits to working exclusively with the broker for the specified duration outlined in the listing agreement. This exclusivity ensures that the broker's efforts are appropriately rewarded and fosters a collaborative and focused approach to achieving the seller's real estate goals. The exclusive agency model offers a balanced framework that aligns the interests of the seller and the broker in the property sale process.