Difficulty: Hard

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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 an open listing, the broker is only entitled to a commission if they can demonstrate that they or their licensed agents were the procuring cause of the sale. This means they must be the ones who directly facilitated the sale, which is essential in an open listing scenario where multiple brokers may be involved.

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

An open listing does not require the broker to list the property in the Multiple Listing Service (MLS). Open listings can be marketed in various ways, and brokers may choose to pursue clients without the use of the MLS, thus making this requirement incorrect.

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

A protection clause is not a requirement for open listings. Such clauses are more commonly associated with exclusive listings, where a broker is guaranteed protection for a certain period. Open listings lack this level of commitment and can be terminated by the seller at any time.

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

While communication is important in real estate transactions, there is no specific requirement for brokers in open listings to notify other brokers about a sale within a certain timeframe. This choice misrepresents the responsibilities of brokers in open listing situations, where commission entitlement hinges solely on being the procuring cause.

Conclusion

In open listings, the crucial factor for a broker to earn a commission is proving they or their licensees were the procuring cause of the sale. Other options presented, such as MLS listing requirements, protection clauses, or notification obligations, do not apply to open listings and therefore cannot serve as conditions for commission entitlement. Understanding these distinctions is vital for brokers working in diverse listing environments.

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