Question 46

The listing agreement should be in writing and signed by the seller.

An open listing requires that the listing agreement be in writing and signed by the seller to be legally enforceable. This ensures both parties have a clear understanding of the terms and conditions of the agreement.

A) The listing agreement may be renewed automatically without signature

This statement is incorrect because open listings do not have an automatic renewal clause unless specifically stated in the agreement. Typically, such agreements require explicit consent for renewal, which must be documented in writing.

B) No matter who sells the property, the listing broker is entitled to a fee

This option is inaccurate as it contradicts the nature of an open listing. In this type of agreement, the seller is free to sell the property independently without incurring a fee to the listing broker if they do not facilitate the sale.

C) If the seller sells the property, commission is still due

This statement is false in the context of an open listing. If the seller sells the property without the assistance of the listing broker, they are not obligated to pay a commission to the broker, which is a defining characteristic of open listings.

D) The listing agreement should be in writing and signed by the seller

This statement is correct as it reflects the legal requirement for an open listing. A written and signed agreement provides clarity and protection for both the seller and the broker regarding the terms of the listing.

Conclusion

The correct answer, D, emphasizes the importance of having a written and signed listing agreement in place for it to be valid. All other options fail to accurately represent the nature of open listings, which allow sellers to work independently without incurring unnecessary fees or obligations to brokers if they sell the property themselves.