Understanding the Difference Between Exclusive and Non-Exclusive Rights to Use Property Under US Law

When it comes to property rights, there are two main types of agreements that can be made: exclusive and non-exclusive. An exclusive agreement gives the real estate agent the exclusive right to sell the property for a specified period of time, while a non-exclusive agreement allows the seller to work with several agents simultaneously to sell the property. Understanding the differences between these two types of agreements is crucial for any seller looking to maximize the sale price of their property while minimizing the time spent on the market. Non-exclusive servitude is a type of agreement that is perpetual and sticks to the land rather than reaching an agreement with the landlord. This type of agreement is often temporary and only provides opportunities for a short term period.

On the other hand, exclusivity can only work until the property is passed to a new owner. A listing agreement allows a real estate agent to sell a property and receive a commission when the sale is complete. The contribution agreement can be exclusive or non-exclusive. When exclusive, the real estate agent is entitled to a commission regardless of who sells the home. When it is not exclusive, the real estate agent will only receive a commission if the property is sold.

At Pulgini & Norton, our real estate lawyers can help Boston homeowners make decisions about exclusive and non-exclusive listing agreements and other issues related to real estate transactions. When drafting a license agreement, make sure you understand the difference between a “single license”, an “exclusive” license and a “non-exclusive license”. A single license means that the owner of the rights grants a license to the dealer and no one else, although the owner can also exercise the rights that are being licensed to the dealer. In an exclusive license, the dealer is the only one who can use the rights described in the license, and even the owner cannot exercise the rights granted to him in the license. Often, the licensor does not realize that, with an exclusive license, they are preventing them from acting. A non-exclusive license means that the dealer is one of many, including the owner, who can take the steps described in the license.

With any license, the grantor can ultimately recover the rights granted. In an assignment, the grantor irretrievably waives its rights. A non-exclusive sales agreement is a contract between a real estate agent and a seller that gives the agent the right to list the property for sale, but does not guarantee exclusivity. An exclusive sale agreement is a contract between a real estate agent and a seller that gives the agent the exclusive right to sell a property for a specified period of time. Traditionally, these agreements include details such as commission amounts (which are usually 5-6% of sales proceeds), length of agreement, security clauses protecting agents after expiration date, statements about specific facts such as right to sell and whether someone else has stake in property, obligations and authorizations of agents, and sometimes dispute resolution clauses. When an exclusive license is stated but limited to particular territory or field of use, parties should carefully consider how much authority they are giving to licensee in terms of processing, defending and enforcing intellectual property rights.

The exclusive licensee of one or more of these exclusive rights is considered as owner of those rights.