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Simple English definitions for legal terms
open listing
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A quick definition of open listing:
An open listing is an agreement between a property owner and multiple agents, where the owner can give selling rights to more than one agent at a time. The owner is obligated to pay a commission only when a specified broker makes a sale, and the owner reserves the right to personally sell the property without paying a commission. It is also known as a nonexclusive listing, general listing, or simple listing.
A more thorough explanation:
An open listing is an agreement between a property owner and multiple agents, where the owner agrees to pay a commission to the agent who successfully sells the property. The owner also reserves the right to sell the property themselves without paying a commission.
For example, if a homeowner wants to sell their house, they can sign an open listing agreement with multiple real estate agents. The first agent who finds a buyer and completes the sale will receive the commission.
This type of listing is non-exclusive, meaning the owner can work with multiple agents at the same time. It is also known as a general or simple listing.
Open listings are beneficial for property owners who want to increase their chances of selling their property quickly. However, it can also lead to confusion and competition between agents, which may not be in the best interest of the owner.