17. In order to collect a commission, which of the following is a requirement for a broker with an open listing?
Answer: C
The broker or one of the broker's licensees must be the procuring cause for the sale.
In order for a broker to collect a commission on an open listing, it is necessary that the broker or one of their licensees is the procuring cause of the sale. This means they must be the ones who initiated the transaction that ultimately led to the sale of the property.
A) The broker must put the listing in the MLS.
This option is incorrect because an open listing does not require the property to be listed in the Multiple Listing Service (MLS). Open listings are typically marketed by the owner and can be sold by any broker, making MLS submission unnecessary for commission eligibility.
B) The listing must have a protection clause.
While a protection clause can be beneficial in some listings, it is not a requirement for open listings. Open listings are generally flexible agreements that do not necessitate such clauses for a broker to earn a commission.
C) The broker or one of the broker's licensees must be the procuring cause for the sale.
This statement is correct as it aligns with the principle that to receive a commission, the broker must be the one who facilitated the transaction. This means they played a direct role in bringing about the sale.
D) The broker must notify any other broker with an open listing on the property of the sale within 2 days after acceptance of an offer.
This option is incorrect since there is no legal requirement for a broker to notify other brokers about the sale of a property under an open listing. The focus of an open listing is on the broker who successfully brings buyers to the property, not on communication with other brokers.
Conclusion
The requirement that the broker or one of their licensees must be the procuring cause for the sale is essential for earning a commission on an open listing. Options A, B, and D do not meet the necessary criteria for commission eligibility, further solidifying that C is the definitive correct answer. Understanding these conditions is crucial for brokers operating under open listings to ensure they are properly compensated for their efforts.