What happens in a situation with an open listing agreement when the seller finds a buyer without agent involvement?

What happens in a situation with an open listing agreement when the seller finds a buyer without agent involvement?

• A. The agent is owed a commission for marketing efforts.
• B. The seller owes a commission to both the buyer and the agent.
• C. No one is owed a commission.
• D. The buyer is responsible for paying the seller's fee.

Answer: (C)

In the case of an open listing agreement, the seller retains the right to sell the property themselves without owing a commission to the real estate agent if they find a buyer independently. An open listing allows multiple agents to work with the seller, but only the agent who brings in a buyer is entitled to a commission. When the seller successfully finds a buyer without any agent's involvement, there is no contractual obligation to pay a commission because the agreement typically outlines that commission applies only when an agent facilitates the sale. This means that if the seller closes the deal on their own, none of the agents involved, including the one who may have marketed the property previously, earn a commission. Therefore, in this scenario, no one is owed a commission as the seller did not put the property under the agent's contractual arrangement when they found a buyer independently.

In the case of an open listing agreement, the seller retains the right to sell the property themselves without owing a commission to the real estate agent if they find a buyer independently. An open listing allows multiple agents to work with the seller, but only the agent who brings in a buyer is entitled to a commission.

When the seller successfully finds a buyer without any agent's involvement, there is no contractual obligation to pay a commission because the agreement typically outlines that commission applies only when an agent facilitates the sale. This means that if the seller closes the deal on their own, none of the agents involved, including the one who may have marketed the property previously, earn a commission. Therefore, in this scenario, no one is owed a commission as the seller did not put the property under the agent's contractual arrangement when they found a buyer independently.