What "exclusive" buys
Listing types differ on one question: when does the broker get paid?
- Exclusive right-to-sell: one broker earns the commission if the property sells during the term regardless of who procures the buyer, including the owner. The most broker-favorable form.
- Exclusive agency: one broker, but the owner retains the right to sell personally without owing a commission. The most frequently confused answer.
- Open listing: only the broker who is the procuring cause is paid; the owner may sell with no commission.
- Net listing: a compensation structure, not an exclusivity structure, and prohibited in Georgia.
Worked example: exclusive agency
A seller signs an exclusive agency listing at 5%, then personally finds a buyer with no broker involvement and sells for $400,000. Commission owed: $0. The $20,000 figure is $400,000 × 0.05, correct only under an exclusive right-to-sell.
Georgia rule: no net listings
GREC prohibits accepting net brokerage engagements, and the broker must add the broker's fee and notify the client of the gross price of the property and the broker's services. Elsewhere net listings are merely discouraged; in Georgia they are prohibited, and no signed waiver cures a prohibited engagement.
Worked example: a seller wants to net $300,000 and the fee is 6% of the gross price. The net is 100% − 6% = 94% of gross, so gross = $300,000 ÷ 0.94 = $319,148.94. Adding 6% to the net ($300,000 × 1.06 = $318,000) is the classic wrong method and leaves the seller short.
Georgia rule: expiration and protected periods
Every exclusive brokerage agreement must fully set forth its terms and carry a definite date of expiration. Failing to include a fixed expiration date, or failing to leave a copy with the principal, is an unfair trade practice. An automatic renewal clause is the trap: a self-extending clause is inconsistent with a definite expiration.
Count protected periods in days, not months. A listing expiring June 30, 2026 with a 90 day protected period: 30 days is July 30, 61 days is August 30, and 90 days is September 28, 2026.