What type of contract is an exclusive right of sale listing?

An exclusive right of sale listing is classified as a bilateral contract. In a bilateral contract, both parties involved make promises to each other, creating mutual obligations. In the context of an exclusive right of sale listing, the seller agrees to pay a commission to the real estate broker if the property is sold during the listing period, while the broker agrees to actively market and sell the property.

This mutual promise establishes a clear and enforceable agreement, which is a defining characteristic of a bilateral contract. The broker’s obligation to find a buyer and the seller’s commitment regarding the payment of commission upon sale showcase the reciprocal nature of the agreement.

The other classifications, such as unilateral, oral, and conditional, pertain to different characteristics or forms of contracts and would not accurately describe the nature of an exclusive right of sale listing. Unilateral contracts involve one party making a promise without a corresponding obligation from the other party. Oral contracts refer to agreements that are spoken rather than written and may lack the enforceability of written agreements under certain conditions. Conditional contracts involve terms that must be fulfilled before obligations are activated, which does not reflect the nature of an exclusive right of sale listing.