A rural seller lists his property simultaneously with three different brokers on identical, non-exclusive terms and also markets it himself on a for-sale-by-owner website. None of the brokers has exclusivity. Broker A shows the property in January, but the buyer goes cold. In March, Broker B re-engages the same buyer, negotiates a successful offer, and closes the deal. Broker B is paid; Broker A and the third broker receive nothing because their efforts were not the unbroken cause of the closed transaction, and the seller could even have sold it himself with no broker fee. Which listing structure did the seller use with the three brokers?
Correct Answer
C) Open listing
The seller worked with three brokers on identical non-exclusive terms, retained the right to sell himself with no commission, and only the broker whose unbroken effort caused the sale was paid. A non-exclusive listing in which any broker may bring the buyer and only the procuring cause earns commission is an open listing.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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