What characterizes an open listing?

An open listing is characterized by the fact that only the agent who successfully sells the property gets to collect the commission. This arrangement allows the property owner to engage multiple real estate agents without exclusive representation, meaning they can also attempt to sell the property independently. The fundamental nature of an open listing encourages competition among agents, as only the agent who brings a buyer to the table will be compensated. This structure can be beneficial for sellers who want to maintain flexibility and are willing to put effort into promoting their property themselves.

Regarding the other options, commission sharing is more typical of exclusive agency or MLS-listed properties, where multiple agents might work under an agreement to share commissions. An open listing does not require multiple signatures since the owner can easily create a listing without needing extensive documentation or agreements from various parties. Finally, open listings are typically informal and do not necessitate a written agreement to be valid, as they are based on verbal communication between the seller and the agent.