A landlord agrees to pay a broker unless someone else finds a tenant first. This is an example of what type of listing?

A landlord agrees to pay a broker unless someone else finds a tenant first. This is an example of what type of listing?

• A. An exclusive right to sell agreement
• B. An exclusive agency agreement
• C. An open listing
• D. A net listing

Answer: (C)

The scenario presented describes an open listing. In an open listing arrangement, the landlord offers the property for lease and allows multiple brokers to attempt to find a tenant. However, the landlord only pays a commission to the broker who successfully locates a tenant, meaning that if another individual or entity finds a suitable tenant before the brokers do, that individual would not owe a commission to any broker. This type of listing is distinct from an exclusive right to sell agreement, where a single broker has the sole right to market the property and will be paid regardless of who finds a tenant. It is also different from an exclusive agency agreement, in which one broker has the right to market the property, but the owner retains the ability to find a tenant themselves without owing a commission to the broker if they succeed. A net listing, on the other hand, allows the broker to keep any amount received over a specified minimum as their commission, which is not applicable in this context. Thus, the agreement described effectively illustrates the nature of open listings, where competition among brokers is a key characteristic.

The scenario presented describes an open listing. In an open listing arrangement, the landlord offers the property for lease and allows multiple brokers to attempt to find a tenant. However, the landlord only pays a commission to the broker who successfully locates a tenant, meaning that if another individual or entity finds a suitable tenant before the brokers do, that individual would not owe a commission to any broker.

This type of listing is distinct from an exclusive right to sell agreement, where a single broker has the sole right to market the property and will be paid regardless of who finds a tenant. It is also different from an exclusive agency agreement, in which one broker has the right to market the property, but the owner retains the ability to find a tenant themselves without owing a commission to the broker if they succeed. A net listing, on the other hand, allows the broker to keep any amount received over a specified minimum as their commission, which is not applicable in this context.

Thus, the agreement described effectively illustrates the nature of open listings, where competition among brokers is a key characteristic.