How is an open listing defined?

An open listing is defined as a non-exclusive contract for either sale or purchase, allowing the property owner to work with multiple brokers and agents simultaneously. This means that the seller can list their property with any number of brokers or even sell it independently without owing a commission to any broker unless that broker is the one who brings a buyer. The flexibility of an open listing accommodates sellers who wish to maximize exposure through various marketing channels and may incentivize quick sales through competition among brokers.

The other options do not accurately capture the essence of an open listing. While a non-exclusive contract for one broker only describes an exclusive agency listing, a binding contract for multiple listings does not pertain to open listings, as they allow the seller freedom to change or work with multiple agents. Additionally, there is no inherent guarantee of higher profits for sellers with an open listing, as profit is determined by market conditions and the effectiveness of the marketing strategy employed by the brokers, rather than the nature of the listing itself.