The North Carolina Supreme Court has ruled that an exclusive listing agreement for real estate, which sets out the sales price and terms of sale, does not confer upon the real estate agent the authority to enter into a contract of sale on behalf of the seller.

In its decision the Court noted that although a listing agreement may state that the agent shall have an exclusive "right to sell" the property, the term "to sell" when used in contracts between real estate agents and owners of property is generally given the restricted meaning of power to find a purchaser, and alone is not sufficient to empower a real estate agent to enter into a contract of sale for that property.

As the Court pointed out, "The decision whether to sell the land, on what terms, and to whom, involves complex questions which should not be deemed readily entrusted to an agent. Where several offers are received by an agent, they may vary not only as to price but also as to terms, financing, date of possession or numerous other factors. A decision on such matters would normally be for the owners of real estate, not their agents."

CAVEAT: In order for a real estate agent to have authority to enter into a binding contract of sale, he or she must be clearly and expressly granted that authority in the listing agreement.

James E. Scarbrough (former legal counsel to the North Carolina Real Estate Licensing Board) was attorney for the defendant-appellee (property owner). An amicus curiae brief was filed by Assistant Attorney General Harry H. Harkins, Jr., Legal Counsel for the North Carolina Real Estate Licensing Board.