National Real Estate Exam (PSI)ContractsMedium
A seller lists a home with three different brokers under separate agreements, agreeing to pay a commission only to whichever broker actually procures a buyer. If the seller finds the buyer without help, the seller owes no commission. This is an example of:
- AA net listing
- BAn exclusive-right-to-sell listing
- CAn exclusive-agency listing
- DAn open listing
Show answer & explanationAnswer & explanation
Correct answer: D. An open listing
An open listing allows a seller to list with multiple brokers simultaneously and pay only the broker who successfully procures the buyer; the seller pays nothing if they sell the property themselves.
Why the other options are wrong
- A. A net listing is based on the seller's net proceeds regardless of number of brokers used.
- B. Exclusive-right-to-sell also uses one broker and pays commission even if seller sells it.
- C. Exclusive-agency limits the seller to one broker, unlike this scenario with three brokers.
Open Listing
A non-exclusive listing agreement allowing a seller to list with multiple brokers, paying commission only to whichever broker procures the buyer.
- Seller can list with unlimited brokers simultaneously
- No commission owed if seller finds their own buyer
- Least protective listing type for brokers
Memory trick: Open listing, open door — many brokers, one gets the reward.