Humber/Ontario Real Estate Course 3 Exam Practice

If a seller wishes to list with multiple brokerages, what type of listing agreement is this?

1. Exclusive Listing

2. Non-Exclusive Listing

3. Open Listing

4. Private Listing

5. Shared Listing

6. Wholesale Listing

The correct answer is: Open Listing

A seller wishing to list with multiple brokerages would engage in an open listing agreement. This type of agreement allows the seller to retain the right to work with any number of agents or brokers simultaneously, promoting competition among them to sell the property. Essentially, an open listing provides the seller with flexibility and the opportunity to encourage more agents to bring in potential buyers. In an open listing, the seller only pays a commission to the agent who successfully sells the property, thereby creating an incentive for brokers to act quickly and efficiently. This is in contrast to exclusive listings where a seller would list their property with only one brokerage, limiting the reach of potential buyers and the marketing efforts to a single agent or firm. Other types of listings, such as a non-exclusive listing, may also allow multiple listings but don't carry the specific competitive advantages present in an open listing because of varied permissions and conditions.