California Real Estate SalespersonContractsEasy
A homeowner tells three different real estate agents that whichever one first brings a buyer who completes the purchase will earn the commission, with no exclusivity granted to any single agent. This arrangement is best described as:
- AAn exclusive right to sell listing
- BAn open listing
- CA multiple listing service agreement
- DA net listing
Show answer & explanationAnswer & explanation
Correct answer: B. An open listing
An open listing allows the seller to engage multiple brokers simultaneously, with only the broker who successfully procures the buyer earning a commission; the seller owes no commission to unsuccessful brokers.
Why the other options are wrong
- A. Exclusive right to sell involves only one broker with a guaranteed commission.
- C. MLS is a marketing database, not a type of listing agreement itself.
- D. A net listing concerns the broker's compensation structure, not the number of brokers involved.
Open Listing
A non-exclusive listing where a seller may engage multiple brokers, and only the broker who successfully finds a ready, willing, and able buyer earns the commission.
- Seller can also sell the property personally without owing commission
- No broker has exclusivity
- Least commonly used listing type due to lower broker incentive
- Commission earned only by procuring cause
Memory trick: Open Listing = 'Race to the Buyer'—first broker to close wins the prize.