Difficulty: Hard

Average Score: 21%

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 to collect a commission on an open listing, the broker must demonstrate that they or their licensee were the procuring cause of the sale. This means they played a significant role in bringing about the sale, which is a fundamental requirement for earning a commission under open listing agreements.

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

While placing a listing in the Multiple Listing Service (MLS) can help brokers gain exposure, it is not a requirement for collecting a commission on an open listing. Open listings are typically not entered into the MLS, as they allow multiple brokers to market the property without exclusivity.

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

A protection clause is not necessary in an open listing agreement. Open listings are generally understood to be non-exclusive, meaning that the seller can work with multiple brokers without the need for such clauses, which are more commonly found in exclusive listings to protect the broker's commission.

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

There is no formal requirement for brokers to notify other brokers with open listings about the sale within a specific timeframe. Open listings allow for multiple brokers to be involved, and communication about sales is not mandated, emphasizing the non-exclusive nature of such agreements.

Conclusion

In conclusion, the requirement for a broker to collect a commission on an open listing hinges on their status as the procuring cause of the sale. This criterion underscores the nature of open listings, where no exclusive relationship exists, and multiple parties may be involved in the sale process. The other options presented do not reflect essential conditions for earning a commission in this context.

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