What are the differences between "exclusive" and "non-exclusive" agency agreements?

The distinction between exclusive and non-exclusive agency agreements is fundamental to understanding real estate representation. An exclusive agency agreement grants sole rights to one agent to represent the seller or buyer in a transaction, meaning that only that agent can market and sell the property. This also means that if the property sells during the agreement period, the seller is obligated to pay the agent a commission, regardless of who finds the buyer.

On the other hand, a non-exclusive agency agreement allows the seller or buyer to work with multiple agents simultaneously. This means that more than one agent can attempt to sell the property, and the seller is obligated to pay a commission only to the agent who successfully completes the sale. This flexibility can appeal to sellers looking to increase their market exposure or who are not yet ready to commit to a single agent.

The reasons the other choices do not accurately reflect the nature of these agreements include misunderstandings about the rights granted and the implications for representation, affordability misconceptions, and irrelevant distinctions between commercial and residential properties. Thus, the essence of choice B captures the true nature of the difference between exclusive and non-exclusive agency agreements.