A non-exclusive listing agreement where the seller may work with multiple brokers and owes commission only to the one who procures a buyer.
Why Open Listing matters on the exam
This term belongs to Contracts. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Open Listing
Every Freehold question shows why the right answer is right — and cites its source.
A 90-day exclusive listing agreement lapses without the property selling, and neither party takes further action. The agency relationship:
Terminates automatically by expiration of the agreed term
Continues indefinitely until either party formally cancels it
Converts automatically into an open listing
Remains valid only for buyer inquiries received before the deadline
Show answer & explanation
Terminates automatically by expiration of the agreed term — An agency created for a defined term ends automatically once that term expires, regardless of whether the property sold, unless the parties agree to extend it.
Source: PSI National Real Estate Exam Content Outline §5 General Principles of Agency
Under an open listing, if the seller sells the property without any broker's assistance, the seller:
Owes a full commission to every broker holding an open listing
Owes commission only to the first broker who signed the listing
Owes no commission to any broker
Must pay double commission as a penalty
Show answer & explanation
Owes no commission to any broker — Under an open listing, the seller retains the right to sell the property personally without owing a commission to any of the brokers who hold a non-exclusive open listing.
Source: PSI National Real Estate Exam Content Outline §7 Contracts
Which type of listing agreement entitles the broker to a commission regardless of who ultimately finds the buyer, including the seller?
Open listing offered to several brokers
Exclusive agency listing with one broker
Net listing keyed to a minimum seller price
Exclusive right to sell listing
Show answer & explanation
Exclusive right to sell listing — An exclusive right to sell listing guarantees the broker a commission if the property sells during the listing term no matter who procures the buyer, even the seller.
Source: PSI National Real Estate Exam Content Outline §7 Contracts
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