Mrs. Jackson signs an open listing with three brokers. Regarding commission:
Correct Answer
D) Each broker can earn entire commission
An open listing is a unilateral offer to whichever broker produces a ready, willing and able buyer, so each of the three is competing for the whole fee and the one who procures the buyer takes it. The others get nothing, and the seller may also sell without any of them. Other choices: paying all three brokers in equal shares would pay two brokers for doing nothing; paying the first broker rewards the signing date rather than the sale; and a three-way split is what a cooperating arrangement might do, not what an open listing does.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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