Which type of agreement is most commonly used for selling residential properties in Colorado?

The exclusive right-to-sell agreement is the most commonly used contract in Colorado for selling residential properties because it provides the listing agent with the most security and incentive. Under this type of agreement, the agent is granted the exclusive right to market and sell the property, which means that regardless of who locates a buyer—whether it's the agent, the seller, or another party—the agent is entitled to the agreed-upon commission.

This structure greatly encourages the agent to actively and aggressively market the property, as they will receive compensation no matter how the sale is completed. Sellers benefit from this arrangement through the focused effort of the agent, who is motivated to achieve the best sale price. Additionally, this agreement often includes various services provided by the agent, including marketing, open houses, and negotiations, which can lead to a quicker and potentially more lucrative sale.

Other types of agreements, while valid, do not offer the same level of commitment or benefit to the seller. For example, an open listing agreement allows multiple agents to list the property, which may dilute the efforts of each agent and lead to less cohesive marketing. An implied agency agreement arises from the behavior of the parties rather than a formal agreement, which can lead to uncertainty and is less formalized. An