87. Broker A and a seller agree to an open listing. Broker B obtains a second open listing from the seller and produces a buyer who is ready, willing, and able to close on the seller's home. Which statement is true of this transaction?
Answer: B
Broker B will earn the full commission if the buyer performs.
In this scenario, Broker B, having secured an open listing from the seller and produced a buyer ready to close, will earn the full commission for the transaction. Open listings allow multiple brokers to represent the seller, and the broker who brings in the buyer typically receives the entire commission.
A) Broker B must call Broker A to present the offer.
This option is incorrect because there is no requirement for Broker B to notify Broker A about the offer. In an open listing agreement, the seller can work with multiple brokers simultaneously, and each broker is independent in their dealings.
B) Broker B will earn the full commission if the buyer performs.
This statement is correct as Broker B, having brought a buyer who is ready, willing, and able to purchase the property, is entitled to the full commission. Since the seller granted Broker B an open listing, which permits multiple brokers to compete for the commission, Broker B's efforts in securing the buyer directly entitle them to the commission.
C) Broker A and Broker B will split the commission upon closing.
This option is incorrect because there is no obligation for the commission to be split in an open listing scenario. The broker who successfully brings the buyer to the seller typically retains the full commission, unless otherwise agreed upon.
D) The seller is required to pay a commission to Broker A upon closing.
This statement is also incorrect. Since Broker A has an open listing but did not secure the buyer, the seller is not obligated to pay Broker A any commission unless Broker A had a separate agreement or the buyer was introduced by Broker A.
Conclusion
Broker B's entitlement to the full commission is rooted in the nature of open listings, which allow brokers to operate independently and compete for commissions based on their performance. Other options fail because they misinterpret the dynamics of open listings and the obligations between brokers and sellers. In this case, Broker B's successful engagement with a buyer directly leads to their right to the entire commission.