Difficulty: Easy

Average Score: 82%

In order to collect a commission, which of the following is a requirement for a broker with an open listing?

Rationale

The broker or one of the broker's licensees must be the procuring cause for the sale.

In order for a broker to collect a commission from an open listing, they must demonstrate that they or one of their licensees was the procuring cause of the sale, meaning they played a significant role in bringing about the transaction.

A (The broker must put the listing in the MLS.) YOUR ANSWER

While listing a property in the Multiple Listing Service (MLS) can help enhance visibility and attract buyers, it is not a requirement for a broker to collect a commission on an open listing. Open listings are typically not exclusive and do not necessitate MLS inclusion for commission eligibility.

B (The listing must have a protection clause.) YOUR ANSWER

A protection clause in a listing agreement ensures that the broker will be compensated if a buyer they introduced purchases the property within a specified period after the listing expires. However, for open listings, which are non-exclusive, such a clause is not necessary for the broker to earn a commission based on their role in the transaction.

D (The broker must notify any other broker with an open listing on the property of the sale within 2 days after acceptance of an offer.) YOUR ANSWER

Although it is good practice to communicate with other brokers involved in an open listing, there is no legal obligation for a broker to notify them within a specific timeframe after accepting an offer. This requirement does not affect the broker's right to a commission.

Conclusion

In the context of an open listing, the key requirement for a broker to receive a commission is to establish that they, or one of their licensees, were the procuring cause of the sale. Other options such as MLS listing, protection clauses, and notification timelines do not serve as prerequisites for commission entitlement. Understanding this distinction is crucial for brokers operating under open listings to ensure their entitlement to compensation.

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