Question 15

The broker or one of the broker's licensees must be the procuring cause for the sale.

To collect a commission on an open listing, a broker must demonstrate that they or one of their licensees were the procuring cause of the sale. This means they must be the ones who brought about the sale through their efforts.

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 entered into the Multiple Listing Service (MLS). Open listings are typically used for properties that can be marketed by multiple brokers without exclusive representation, meaning MLS inclusion is not a prerequisite for commission eligibility.

B) The listing must have a protection clause

This option is also incorrect. A protection clause is typically associated with exclusive listings, where the broker is guaranteed a commission under specific conditions. In an open listing scenario, there is no requirement for such a clause, as the seller retains the right to sell the property independently.

C) The broker or one of the broker's licensees must be the procuring cause for the sale

This is the correct answer. For a broker to receive a commission from an open listing, they must establish that they or their licensee directly contributed to the sale, thereby fulfilling the role of the procuring cause.

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 as it misrepresents the obligations of a broker in an open listing scenario. There is no formal requirement for notifying other brokers in this context, as open listings allow multiple brokers to work on the same property without the need for such notifications.

Conclusion

The requirement that the broker or their licensee must be the procuring cause for the sale is essential for them to earn a commission in an open listing situation. Other options either misinterpret the nature of open listings or outline requirements that do not apply. Therefore, option C is definitively the correct choice, as it accurately reflects the conditions necessary for a broker to claim commission in this type of listing arrangement.