Massachusetts Real Estate License Practice Test

What differentiates an open listing from an exclusive listing?

1. Open listings involve only one agent

2. Exclusive listings restrict all but one broker from selling

3. Open listings allow the seller to sell independently

4. Exclusive listings have no commission fees

The correct answer is: Open listings allow the seller to sell independently

An open listing is characterized by the seller giving permission to multiple agents to market their property while retaining the right to sell it themselves. This means that the seller can actively seek buyers independently and is not limited to one particular agent. This flexibility allows sellers to maximize exposure to their property and can motivate agents to work harder since they compete against each other to secure a sale. In contrast, an exclusive listing designates a single broker to represent the seller in the sale of the property, thus restricting other brokers from attempting to market or sell it. Exclusive listings generally provide more motivation for the agent, as they are assured of a commission upon the sale, should they manage to complete the transaction. The concept of commission fees is not tied to the nature of exclusivity itself; both open and exclusive listings typically involve commission arrangements but differ in how many agents are involved in the process. Thus, the implication that exclusive listings have no commission fees does not apply in this context.