There are a number of different Agency Agreements a vendor can enter into with a real estate agent these include:

• Exclusive agency agreement – where you deal only with one real estate agent, whose fee is payable however the property is sold. This agent is given exclusive authority to sell the property for a specified period, usually 60-120 days.
• Sole agency agreement – the same as an exclusive agency agreement, except that the owner may sell his or her property privately without paying the agent’s fee.
• Open agency agreement – where you engage a number of real estate agents, and only the agent who sells your property receives the commission. If you sell the property privately then you do not need to pay the agent a fee.
• Auction agency agreement – where your agent organises the auction of your home and is structured similar to an exclusive agency agreement.
• Multiple listing agency agreement – where your personal agent works with a co-operative network of agents to sell your home. The exclusive period is for 90 days, plus a non-exclusive period of one year. You deal only with the listing agent, who is responsible for all negotiations with other agents and interested buyers.

In my opinion you should only enter into Sole and Open agency agreements with real estate agents. This allows you to find a buyer and save having to pay a real estate agent any commission. Even though most real estate agents are trying to resist signing these Agreements they will become more and more popular in the future.

The reason it is important to sign an open/sole agency agreement is that websites like Privatepoint allow you to list your property for FREE providing you with the opportunity to find a buyer for your property.