Exclusive Right to Sell, Exclusive Agency and Open Listings Explained

The short answer: The three main types of listing agreements differ in one way: who gets paid when the property sells. In an exclusive right to sell listing, one broker is owed the commission no matter who finds the buyer. In an exclusive agency listing, one broker is owed it unless the owner finds the buyer personally. In an open listing, the owner can hire several brokers, and only the one who produces the buyer gets paid. A fourth type, the net listing, is banned in New Jersey (N.J.A.C. 11:5-6.2(f)).

Those are the standard textbook definitions. In real life, what a seller owes always depends on the wording of the signed agreement. Below are the three types side by side, plus the New Jersey rules that apply to any listing you take. "Types of listing contracts" is a line item in the agency section of the PSI exam outline (PSI candidate bulletin).

What is a listing agreement, exactly?

A listing agreement is the contract in which a property owner hires a brokerage to market and sell (or rent) the property. It also creates the agency relationship. In NJREC's words, "a listing agreement creates the relationship of a seller's agent" (NJREC FAQ).

Note that the agreement is with the broker, not with the individual agent. A salesperson works under a broker and can be paid only through that broker (N.J.S.A. 45:15-3; N.J.S.A. 45:15-16). For more on what the titles mean, see agent vs. REALTOR® vs. broker.

How do the three listing types compare?

	Exclusive right to sell	Exclusive agency	Open listing
How many brokers?	One	One	Any number
Broker paid if another broker finds the buyer?	Yes (the listing broker typically shares with the cooperating broker)	Yes	Only the broker who produced the buyer
Broker paid if the owner finds the buyer?	Yes	No	No
Protection for the broker	Most	Middle	Least

What is an exclusive right to sell listing?

The owner lists with one broker for a set period, and that broker earns the agreed commission if the property sells during the term, whoever finds the buyer, even the owner. Because the commission doesn't depend on who finds the buyer, this type gives the broker the most protection.

Exam clue: if the question says the owner sold to a neighbor on their own and asks whether the broker is still owed a commission, the answer for an exclusive right to sell is yes.

What is an exclusive agency listing?

The owner still lists with one broker, but keeps the right to sell the property personally without owing that broker a commission. If any broker, including a cooperating one, produces the buyer, the listing broker is owed the commission. If the owner finds the buyer with no broker involved, nothing is owed.

Exam clue: "exclusive" plus "owner reserves the right to sell" points to exclusive agency.

What is an open listing?

The owner gives non-exclusive listings to as many brokers as they like. Only the broker who is the procuring cause of the sale earns a commission, and if the owner sells it personally, no one does. Open listings give brokers the least protection.

Exam clue: several brokers, "first to produce a buyer gets paid" means an open listing.

What is a net listing, and why is it banned in NJ?

In a net listing, the seller names a dollar amount they want to walk away with, and the broker keeps anything above it. New Jersey defines it as an agreement authorizing a broker "to sell at a specified net dollar return to the seller," with the broker keeping the difference as commission. No NJ licensee may enter into one (N.J.A.C. 11:5-6.2(f)). The reason is the conflict of interest: the broker profits from keeping the seller in the dark about the property's real value.

What NJ rules apply to every listing?

Whatever the type, New Jersey requires the following:

Written authority for a commission. A broker is entitled to a commission only if the authority is in a writing signed by the principal that states the amount or rate, with a narrow exception for oral agreements (N.J.S.A. 25:1-16).
A copy at signing, and a definite end date. Failing to give the client a fully executed copy of a sale or exclusive listing at signing, or to include "a definite terminal date" that isn't subject to qualifying conditions, is grounds for discipline (N.J.S.A. 45:15-17(f)).
No preset commission. Listings can't contain a prescribed or predetermined commission rate, or even a blank with a percent sign that suggests one (N.J.A.C. 11:5-6.2(b)).
The negotiability notice. Listings for 1–4 family homes must print, larger than the surrounding text: "As seller you have the right to individually reach an agreement on any fee, commission, or other valuable consideration with any broker..." (N.J.A.C. 11:5-6.2(c)).
Split disclosure. On request, the listing broker must tell the seller the commission split (N.J.A.C. 11:5-6.2(d)).
MLS details. The listing must name the complete MLS if it's going into one (N.J.A.C. 11:5-6.2(e)), and the listing broker must notify that MLS within 48 hours of the listing's effective date (N.J.A.C. 11:5-6.4(f)).
Fair housing summary. When taking a residential listing, the licensee must give the owner the Attorney General's summary of the NJ Law Against Discrimination. If the owner says they won't follow that law, the licensee may not accept the listing (N.J.A.C. 11:5-6.4(j)).
A brokerage services agreement. Under P.L.2024, c.32, effective August 1, 2024, a listing is a written brokerage services agreement. It must state its term, the type of relationship (in an "Agency Disclosure" paragraph or a separate signed document), whether any agency is exclusive or non-exclusive, the firm's compensation and how it's calculated, and that broker compensation is fully negotiable and not set by law. The Consumer Information Statement is included as part of it (NJREC Bulletin 24-11).
Offers during the term. Written offers go to the owner within 24 hours of the firm receiving them. The listing term ends on its termination date or at the closing of a pending sale (N.J.A.C. 11:5-6.4(g)).

For how commissions and splits work for agents, see whether NJ agents get a salary or commission.

What about the buyer's side?

The buyer's version of a listing is a buyer agency (buyer brokerage) agreement. NJREC says the Consumer Information Statement isn't one (NJREC FAQ). Since August 1, 2024, a firm working for a buyer in a residential deal must sign a written brokerage services agreement with the buyer before, or as soon as reasonably practical after, it starts providing services. The agreement covers the term, the agency relationship, compensation, and what happens if a seller offers no or less compensation (P.L.2024, c.32, s.3; NJREC Bulletin 24-11). The five NJ business relationships are covered in agency on the NJ exam.

How do you remember the differences?

Ask one question: "If the owner finds the buyer, does the broker get paid?"

Yes → exclusive right to sell
No, but only one broker is hired → exclusive agency
No, and several brokers are hired → open listing
The broker keeps whatever is above the seller's number → net listing, which is prohibited in NJ

This page is general education, not legal advice. If you're getting ready for the exam, Business Elementary's 75-hour pre-licensing course covers listings in context.

Studying for the exam? See Contracts on the NJ Real Estate Exam: What the 19% Covers.

Sources

N.J.A.C. 11:5-6.2, Contracts of sale, leases and listing agreements (via Cornell LII): https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-6-2
N.J.A.C. 11:5-6.4, Obligations of licensees (via Cornell LII): https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-6-4
N.J.S.A. 45:15-17 (via Justia): https://law.justia.com/codes/new-jersey/title-45/section-45-15-17/
N.J.S.A. 25:1-16, Commissions of real estate broker, writing required (via Justia): https://law.justia.com/codes/new-jersey/title-25/section-25-1-16/
N.J.S.A. 45:15-3 and 45:15-16 (via Justia): https://law.justia.com/codes/new-jersey/title-45/section-45-15-3/ ; https://law.justia.com/codes/new-jersey/title-45/section-45-15-16/
NJREC, Real Estate FAQs (compliance Q2): https://www.nj.gov/dobi/division_rec/recfaqs.htm
PSI, NJ Candidate Information Bulletin (updated 2/1/2026), content outline section VI: https://test-takers.psiexams.com/api/content/bulletin/1667
P.L.2024, c.32 (effective August 1, 2024), NJ Legislature: https://pub.njleg.state.nj.us/Bills/2024/PL24/32_.HTM
NJ Dept. of Banking and Insurance, Bulletin No. 24-11 (Aug. 1, 2024): https://www.nj.gov/dobi/bulletins/blt24_11.pdf

Last reviewed: October 28, 2026

Related guides:

Pricing a listing? See Comparative Market Analysis vs. Appraisal: What's the Difference? to learn what an agent's CMA is and isn't under NJ law.

Frequently Asked Questions

Are net listings legal in New Jersey?

No. N.J.A.C. 11:5-6.2(f) prohibits any NJ licensee from entering into a net listing, where the broker keeps whatever the sale brings above the seller's specified net amount (N.J.A.C. 11:5-6.2).

Does a NJ listing agreement need an end date?

Yes. Sale and exclusive listings must state a definite terminal date that isn't subject to qualifying terms or conditions (N.J.S.A. 45:15-17(f)).

Is there a standard commission rate for NJ listings?

No. Listings and sale contracts can't contain a prescribed or predetermined rate, and 1–4 family listings must tell sellers they can negotiate the fee with any broker (N.J.A.C. 11:5-6.2(b)–(c)).

Does the seller get a copy of the listing?

Yes. Licensees must give clients a fully executed copy of any sale or exclusive listing at the time it's signed (N.J.A.C. 11:5-6.2(a)4).

Can a broker collect a commission on a handshake deal in NJ?

Generally, the broker's authority must be in a writing signed by the principal that states the commission amount or rate. The statute has a narrow exception for oral agreements that meet strict notice conditions (N.J.S.A. 25:1-16).