Admittedly, the term “sole agency” already hints at what it means: an exclusive agreement between an estate agent and a seller. The latter commissions only a single estate agent to market their property. Sole agency is therefore the direct opposite to multiple agency.
With a sole agency agreement, the seller gives the real estate broker rights and responsibilities. His right is to be the only one permitted to market the property. His responsibility, on the other hand, is to actually provide the agreed services and to do his utmost to achieve a sale on fair terms. In both cases, sole agency and multiple agency, a signed agreement is required, because estate agents are not permitted to engage in the marketing process without the explicit agreement of the owner.
In detail, a distinction is made between a "simple" and a "qualified" sole mandate. In the case of a qualified exclusive commission, the agent secures the exclusive right to market and sell the property, not only excluding other competitors, but also the owner himself. The owner is not permitted to “just” sell the property privately. With a qualified exclusive sole agency, the estate agent is liable for damages if they do not push the sale of the property with maximum effort.
Many hands do not necessarily lead to a better or faster result. There is good reason for the saying: “many cooks spoil the broth.” The same is true in the world of real estate. Owners are sometimes under the misapprehension that appointing as many estate agents as possible to market their property will increase the potential sale value or speed up the sales process. In practice, however, this is not the case, because from the agent's point of view it is more advantageous if they receive a sole commission and can thus devote themselves fully to the property without other estate agents interfering or having to fear that they won’t be paid for the work they have done.
Sole agency creates security for owners and for brokers. Sellers can lean back and relax after they have commissioned the agent. Equipped with the necessary documents and information, the real estate agent goes about his work fully focused. From the owner’s point of view, contacting other estate agents and going through the whole process several times is not necessary - this saves a lot of time. The real estate broker has a financial interest in a successful sales process. Because of the sole agency agreement, they know they will obtain their fee when the sale is completed.
Sometimes the contract period is perceived as a disadvantage by owners, as the property is firmly tied to the exclusively commissioned agent over this period. Here too, however, there is room for manoeuvre in the drafting of the agreement, although, realistically, the broker needs sufficient time to push through the marketing and sales concept.