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Buying & Selling a Business

Is it normal for a broker to ask for exclusivity before doing any work?

TSL Written by the Treadstone Law team· Updated August 2026

Yes, it's common — most business brokers ask for an exclusive listing agreement before investing time in marketing, preparing materials, and reaching out to their buyer network, on the reasoning that they shouldn't have to compete with another broker (or you, working around them) for credit and commission on a sale they're putting real effort into. This isn't a red flag on its own; it's the standard structure of the industry.

What's worth scrutinizing is how long the exclusivity lasts, what happens if you're unhappy partway through, and whether any tail clause extends the broker's commission rights beyond the exclusive term. Exclusivity itself is normal; an unreasonably long term with no meaningful exit, or vague marketing commitments in exchange for that exclusivity, is where sellers run into trouble. It's fair to ask the broker to commit to specific marketing steps or a review point in exchange for granting exclusivity, rather than signing an open-ended commitment with nothing concrete promised back. A Treadstone business lawyer can help you weigh the exclusivity term against what the broker is actually committing to do.

Key takeaways

  • Requesting exclusivity before starting work is standard practice in business brokerage.
  • Exclusivity itself isn't a red flag — the term length and exit terms are what to scrutinize.
  • Ask for concrete marketing commitments in exchange for granting exclusivity.
  • Watch for tail clauses that extend commission rights beyond the exclusive period.
This is general information, not legal advice. It doesn’t create a lawyer–client relationship, and the rules can change. For advice on your situation, a Treadstone business lawyer can help.
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