In an open listing scenario where multiple brokers are involved, who owes the commission when a seller directly sells to a buyer introduced by one of the brokers?

Study for the California Real Estate Broker Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Prepare efficiently and effectively for your licensing exam!

In an open listing scenario, the seller retains the right to sell the property independently and can work with multiple brokers simultaneously. In this situation, if the seller directly sells to a buyer who was introduced by one of the brokers, it is the seller who owes the commission.

This occurs because, in an open listing agreement, the seller is not exclusively bound to any one broker. Thus, if the seller successfully completes a transaction with a buyer—even one who was introduced by a broker—the commission obligation falls upon the seller. The seller is expected to pay the brokerage fee if they use the services of a broker to generate a buyer but is not obligated to pay a commission if they find the buyer themselves, regardless of who introduced them.

This understanding clarifies how commission structures work in open listings, distinguishing them from exclusive listing agreements where the seller might have a contractual obligation to pay commissions regardless of who sells the property.

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