Which statement characterizes an Open Listing?

Which statement characterizes an Open Listing?

• A. The seller may hire any number of brokers, and only the broker who procures a ready, willing, and able buyer earns a commission; no commission if seller sells without a broker; unilateral contract.
• B. The seller must pay the broker a commission regardless of who procures the buyer; bilateral contract.
• C. Only one broker may act on behalf of the seller; broker-paid commission if buyer found by seller.
• D. The seller must sign a written exclusive contract with a single broker.

Answer: (A)

Open listing is a non-exclusive arrangement where the seller can work with multiple brokers. The key feature is that only the broker who actually brings a ready, willing, and able buyer earns a commission, and if the seller finds a buyer without any broker, no commission is due. The contract is unilateral because the seller’s promise to pay arises only if a broker fulfills the condition of procuring a buyer. This aligns with the described statement: the seller may engage several brokers, payment goes to the one who procures a buyer, and there is no commission if the seller sells without a broker. It also reflects why it’s a unilateral contract—the broker isn’t guaranteed payment and is motivated to act only if they can bring a buyer. The other descriptions describe scenarios that are not open listings. An exclusive-type arrangement involves a single broker or a written exclusive contract, which limits the seller to one broker and often changes who pays and under what circumstances. A description stating the seller must pay a commission regardless of who finds the buyer, or that only one broker may act, reflects those exclusive or differently structured agreements rather than an open listing.

Open listing is a non-exclusive arrangement where the seller can work with multiple brokers. The key feature is that only the broker who actually brings a ready, willing, and able buyer earns a commission, and if the seller finds a buyer without any broker, no commission is due. The contract is unilateral because the seller’s promise to pay arises only if a broker fulfills the condition of procuring a buyer.

This aligns with the described statement: the seller may engage several brokers, payment goes to the one who procures a buyer, and there is no commission if the seller sells without a broker. It also reflects why it’s a unilateral contract—the broker isn’t guaranteed payment and is motivated to act only if they can bring a buyer.

The other descriptions describe scenarios that are not open listings. An exclusive-type arrangement involves a single broker or a written exclusive contract, which limits the seller to one broker and often changes who pays and under what circumstances. A description stating the seller must pay a commission regardless of who finds the buyer, or that only one broker may act, reflects those exclusive or differently structured agreements rather than an open listing.