A rural seller signs separate agreements with three brokers at the same time on identical terms and also advertises the home himself on a for-sale-by-owner website. One broker shows the property in January, but the buyer loses interest. In March a second broker re-engages the same buyer, negotiates an offer, and closes the sale. Only that second broker is paid; the other two receive nothing. Which listing structure did the seller use with the three brokers?
Correct Answer
C) Open listing
An open listing is nonexclusive: the seller may sign one with as many brokerages as he likes, may sell the property himself without owing a commission, and pays only the brokerage whose efforts were the procuring cause of the sale. Three simultaneous agreements on identical terms, the seller's own marketing, and payment to the single brokerage that closed the deal describe that structure exactly. Either exclusive form would have obliged the seller to work through one brokerage.
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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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