Question 87

Broker B will earn the full commission if the buyer performs.

In this scenario, Broker B has secured a buyer who is ready, willing, and able to close on the seller's home, which entitles Broker B to the full commission as per the terms of the open listing agreement.

A) Broker B must call Broker A to present the offer.

This statement is incorrect because, in an open listing scenario, there is no requirement for Broker B to inform or consult Broker A when presenting an offer. Each broker operates independently, and the seller is free to engage with multiple brokers.

B) Broker B will earn the full commission if the buyer performs.

This statement is correct. Since Broker B has produced a buyer who is ready, willing, and able to close, Broker B is entitled to receive the full commission for facilitating the sale, as is customary in an open listing arrangement.

C) Broker A and Broker B will split the commission upon closing.

This option is incorrect because, under an open listing, the commission is typically awarded to the broker who brings the buyer. Since Broker B has successfully found a buyer, they would not split the commission with Broker A.

D) The seller is required to pay a commission to Broker A upon closing.

This statement is also incorrect. The seller is not obligated to pay a commission to Broker A simply because of the open listing agreement with Broker A, especially if Broker B successfully closes the sale with their buyer.

Conclusion

Broker B will earn the full commission because they successfully brought a buyer who is ready to close on the property. The nature of open listings allows multiple brokers to compete independently, and only the broker who completes the sale is entitled to the commission. All other options do not accurately reflect the terms of an open listing and the independence of brokers involved.