Open Listing
An open listing is a non-exclusive listing agreement where the property owner can hire multiple brokers simultaneously, with only the broker who procures the buyer earning a commission.
Exam Tip
Open listing = NON-EXCLUSIVE. Multiple brokers can compete. Only PROCURING BROKER earns commission. Owner can sell directly with NO commission owed.
What is an Open Listing?
An open listing is a non-exclusive listing agreement where a property owner authorizes one or more brokers to find a buyer. The broker who successfully procures the buyer earns the commissionâother brokers receive nothing. The owner can also sell the property themselves without owing any commission.
How Open Listings Work
| Feature | Description |
|---|---|
| Exclusivity | Non-exclusiveâmultiple brokers allowed |
| Commission | Only paid to procuring broker |
| Owner Rights | Can sell directly, no commission owed |
| Termination | Usually no fixed term |
Open Listing vs. Other Listing Types
| Listing Type | Exclusivity | Owner Sells? | Commission Due |
|---|---|---|---|
| Open Listing | Non-exclusive | No commission | To procuring broker only |
| Exclusive Agency | Exclusive | No commission | If any broker sells |
| Exclusive Right to Sell | Exclusive | Commission owed | No matter who sells |
| Net Listing | Varies | Varies | Amount above net |
Advantages of Open Listings
| For Sellers | For Brokers |
|---|---|
| Maximum flexibility | Low commitment required |
| Multiple marketing efforts | Can list many properties |
| No commission if self-sold | No exclusivity pressure |
| Easy to terminate | Quick to establish |
Disadvantages of Open Listings
| For Sellers | For Brokers |
|---|---|
| Less broker commitment | No guaranteed commission |
| Minimal marketing investment | Wasted effort if another sells |
| Multiple sign calls to manage | Limited marketing justification |
| Procuring cause disputes | Competition with other brokers |
Procuring Cause Issues
Open listings often lead to disputes over who the "procuring cause" was:
| Issue | Description |
|---|---|
| Multiple Showings | Different brokers may show to same buyer |
| Introduction vs. Sale | Who truly procured the buyer? |
| Timeline Disputes | When did buyer commitment occur? |
When Open Listings Are Used
| Situation | Reason |
|---|---|
| FSBO Backup | Owner primarily selling themselves |
| Commercial Properties | Multiple brokers casting wide net |
| Difficult Properties | Maximize exposure opportunities |
| Owner Flexibility | Owner wants control |
Broker Considerations
Most brokers prefer exclusive listings because:
- Guaranteed commission if property sells
- Justifies marketing investment
- Avoids procuring cause disputes
- Provides clear agency relationship
Exam Alert
Open listing = NON-EXCLUSIVE, multiple brokers can compete, only PROCURING BROKER gets commission, owner can sell directly with NO commission. Contrast with exclusive right to sell where commission is ALWAYS owed.