Illinois Real Estate Practice Exam

What type of listing arrangement involves multiple brokerages selling a property?

1. Exclusive Listing

2. Net Listing

3. Open Listing

4. Exclusive Right to Sell Listing

The correct answer is: Open Listing

The correct answer is related to an arrangement that allows multiple brokerages the opportunity to market and sell a property, which indeed corresponds to an open listing. In an open listing, the property owner can engage as many brokers as they wish to sell the property, and the commission typically goes to the broker who brings the buyer. This structure promotes competition among brokers and offers the seller flexibility. The exclusive listing arrangements, such as the exclusive right to sell, limit the property to a single brokerage, granting them the sole right to earn the commission regardless of who finds the buyer. A net listing, while less commonly used due to legal concerns, focuses on ensuring that the seller receives a predetermined amount after the sale, with the broker keeping any amount over that as commission.