5. 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.
To collect a commission under an open listing, it is essential 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 typically does not require the broker to place the property in the Multiple Listing Service (MLS). Open listings are often informal agreements that allow the property owner to sell the property independently or through multiple brokers.
B) The listing must have a protection clause.
This statement is incorrect as well. A protection clause is generally associated with exclusive listings, not open listings. In an open listing, there is no guarantee of commission for the broker unless they are the procuring cause of the sale.
C) The broker or one of the broker's licensees must be the procuring cause for the sale.
This answer is correct because, in an open listing, the broker must demonstrate that they played a significant role in bringing about the sale to earn a commission. Being the procuring cause is fundamental in justifying the broker's entitlement to the commission.
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. There is no requirement for brokers in an open listing to notify other brokers of a sale within a specific timeframe. Open listings allow for more flexibility and do not impose such obligations.
Conclusion
The necessity for the broker or their licensee to be the procuring cause for the sale is crucial in the context of open listings, as it directly links their efforts to the successful transaction. Other options fail to address the fundamental requirement for earning a commission in this scenario, highlighting the importance of direct involvement in the sale process.