Which description best fits an open listing?

• A. Unilateral contract where the property owner promises to pay a commission if a broker locates a buyer; may be oral or written; brokers compete; owner may sell himself.
• B. Bilateral contract where the owner employs a single broker who has exclusive rights.
• C. A written agreement giving the broker exclusive right of sale.
• D. A net listing where the broker's compensation is anything above a net price.

Answer: (D)

Open listings are unilateral arrangements in which the seller promises to pay a commission to the broker who brings a buyer. The key here is that the seller isn’t bound to work with any one broker; multiple brokers can try, and only the broker who actually locates a ready, willing buyer earns the commission. The owner also retains the right to sell the property themselves without owing a commission.

This differs from an exclusive listing, where a single broker is granted the right to sell the property (and the seller must pay that broker’s commission regardless of who finds the buyer, depending on the exact type). A net listing, on the other hand, sets the broker’s compensation as the excess of the sale price over a specified net amount to the seller, which is a different arrangement entirely and not an open listing.