What characteristic defines an Open Listing Agreement?

An Open Listing Agreement is characterized by its flexibility, allowing multiple brokers to have the right to sell the property simultaneously. This means that the seller can list their property with several brokers and is not restricted to working with just one. If any of the brokers successfully secure a buyer before the others, the seller is obligated to pay only the broker who closed the deal, which encourages competition among brokers.

This type of agreement is particularly advantageous for property owners who wish to maximize exposure and potentially lower commission costs, as they can compare offers from several brokers. It is important to note that while multiple brokers can represent the property, the seller retains the right to sell the property themselves without incurring a commission to any broker.

The other choices do not accurately describe key features of an Open Listing Agreement. For instance, the idea that only one broker can sell the property directly contradicts the fundamental nature of an Open Listing. Similarly, while commission agreements can vary, it is not a requirement that the seller must always pay a commission in an Open Listing, especially if they sell the property themselves. Lastly, although having signatures is a part of creating a binding contract, it is not a defining characteristic of this specific type of agreement. The essence of an Open Listing lies primarily in