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Simple English definitions for legal terms
sole selling agency
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A quick definition of sole selling agency:
A sole selling agency is when one person (the agent) is hired by another person (the principal) to sell something on their behalf. The agent can make decisions and take actions that bind the principal. There are different types of agencies, such as actual agency (when the agent is employed by the principal), agency by estoppel (when the principal's actions make it seem like an agency exists), and agency coupled with an interest (when the agent has a legal interest in the property being sold).
A more thorough explanation:
A sole selling agency is a type of exclusive agency agreement where a seller appoints only one agent to sell their property or goods. This means that the seller cannot appoint any other agents or sell the property themselves during the term of the agreement.
For example, if a homeowner signs a sole selling agency agreement with a real estate agent, they cannot list their property with any other agents or sell it themselves until the agreement expires or is terminated.
This type of agency agreement is beneficial for both the seller and the agent as it ensures that the agent has exclusive rights to market and sell the property, and the seller has the assurance that the agent will work hard to sell the property as they are the only one who will receive a commission.