Before You Sign That Exclusivity Form.

As a real estate broker and for anyone in the service-oriented industry, I’ve always believed that transparency builds trust.

Several days ago, during our mancom meeting in the office, a significant issue was raised about a developer-led sales team tagging along during unit turnovers of our clients. I am not sure if this is a standard practice nowadays but if this were true, isn’t there a conflict of interest present in this scenario? The handover of a property is logistical—all unit and turnover concerns must be addressed, everything must be in good working condition, and more importantly, this should be a neutral experience for any property owner to appreciate their investment. Agree?

This specific event is not meant to solicit business—especially when the forms that will be presented to our clients have the “exclusive authority” option.

Why Should You Bother?

Exclusive Authority Agreements. On paper, an exclusivity arrangement whether it’s for lease or for sale sounds like a smart move—and in some cases, it truly is. But it is always built on confidence because you only work with one trusted broker or firm to manage everything: marketing, screening inquiries, scheduling viewings, and negotiating on your behalf. The accountability is clear. A single point person means no overlap, no miscommunication. But the question is

“How confident are you that a single individual can deliver the soonest?”

Going back to my story above, one of my clients recently shared that she unknowingly signed an exclusive authority to lease and sell with a developer’s rent and resale team—the same team that was allegedly tagging along during unit turnovers. Coincidentally, our conversation was on the same day our executive team discussed about this issue during our meeting. It’s all fine with me because my client passed by their office and voluntarily inquired about their services (Yes, they do have their own office). Plus, I rarely ask for exclusivity unless the property ticks all the right boxes and can be sold in the shortest amount of time.

My issue is with this: My client thought she was just getting additional help to list her unit.

She was not properly informed that this kind of arrangement—one that explicitly said “exclusive” meant no other broker (including me who originally sold her the unit) could assist her in leasing or selling.

Worse? The contract had no expiration date or termination clause. There were no clear metrics and after almost a year of waiting, the unit still sits idle—no serious leads, no clear updates, and no way out.

At this point, we are already drafting formal letter to opt out of the exclusivity agreement. Don’t get me wrong. I mean, it’s not that I felt bad about not being the exclusive agent—it’s more of having my client I’ve known for a long time, someone I already call “Tita”, getting blindsided by such misrepresentations or concealment of crucial information.

Signing an Exclusive Authority agreement? Here’s a shortlist to consider:

Advantages:

1. You are only dealing with a single individual and often, a broker you’ve known for a long time already.

2. Your broker is motivated to perform (since no one else can sell or lease it)

3. You have a streamlined communication with buyers or tenants—whatever platform you go to, the price, the terms, and the offer remain uniform.

But Watch Out For:

1. Lack of disclosure—Were you properly briefed on what exclusivity means?

2. No validity period—Every exclusive agreement must have a start and end date

3. No clear deliverables—What exactly is your broker expected to do?

4. Poor performance with no exit—If things go quiet, are you stuck? Who takes over?

If you’re working with a professional, they will walk you through all these—and you’ll feel comfortable with the commitment. But if someone rushes you into signing without explaining the terms clearly, pause and ask questions.

Or better, talk to someone you trust. Exclusivity can be powerful. But only when it's earned, not assumed.

Exclusively Yours,

Ralph Ocampo, REB

Licensed Real Estate Broker
PRC No. 0033206

+63917 650 0297