Exclusive representation is when a property owner grants one broker sole marketing authority for a defined period. Standard for LA multifamily — contrasts with open listings where multiple brokers can market.
Exclusive listings align broker incentives with seller outcomes: the broker invests in marketing and finds buyers knowing they'll earn commission regardless of source. Open listings often produce less broker effort per listing.
LA multifamily is almost entirely exclusive-representation. Open listings are rare at the upper end of the market. Sellers should insist on exclusive terms with appropriate termination rights rather than trying to split marketing efforts across multiple brokers.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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