PSI New Jersey Real Estate State Practice Exam

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What is a requirement for a broker to collect a commission under an open listing?

A written contract with the seller
The sale must be finalized immediately
The broker's involvement must be proven
The seller is under no obligation to accept the offer

The correct answer is: The seller is under no obligation to accept the offer

In the context of an open listing, the correct understanding revolves around the seller's obligations and the nature of the agreement. An open listing allows multiple brokers to be involved in facilitating the sale of a property, and the seller retains the right to sell the property themselves without owing any commission to the brokers. This means that the seller is under no obligation to accept any offers that come from the brokers, reflecting the flexible and non-exclusive nature of an open listing agreement. In this arrangement, if the seller chooses to accept an offer from a broker, then that broker may collect a commission. However, if the seller decides to reject the offers or sells the property independently, they are not obligated to pay a commission, unless it was agreed otherwise in a separate contract. The seller’s right to refuse to accept an offer is a key feature of an open listing, which distinguishes it from other types of listings where exclusivity or prior agreements may require payment regardless of the outcome.