A seller lists the same property nonexclusively with several brokers and agrees to compensate only the broker who successfully procures the buyer. What type of listing is this?
The correct answer is C, Open listing. An open listing is a nonexclusive brokerage arrangement under which the owner can engage multiple brokers simultaneously. Ordinarily, only the broker who becomes the procuring cause of the completed transaction is entitled to the agreed compensation.
This contrasts with an exclusive-right-to-sell listing, under which the listing brokerage may be entitled to compensation if the property sells during the listing term even when the owner personally locates the buyer, depending on the contract.
An exclusive-agency listing generally allows one broker exclusive agency while reserving the owner ' s right to sell personally without owing the brokerage commission under specified conditions.
Massachusetts Board curriculum expressly lists open listings among recognized listing-agreement forms. It also identifies net listings as illegal in Massachusetts.
Procuring cause centers on which brokerage ' s efforts originated the continuous series of events culminating in the transaction.
Study Guide Reference: Contracts — Listing Agreements; Open Listing and Procuring Cause.
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