In what type of listing may the broker be both the principal and the agent?

In an option listing, the broker has the unique opportunity to act as both the principal and the agent. This arrangement occurs when the property owner grants the broker an option to buy the property, along with the right to sell it. In this way, the broker stands to benefit not just from earning a commission on the sale, but also from the possibility of purchasing the property directly. This dual role creates a distinct situation where the broker has a vested interest in the transaction from both perspectives—acting on behalf of the property owner while also securing potential ownership for themselves.

In contrast, an exclusive right to sell listing typically means the broker has the sole right to market the property for a specified period, but the broker does not hold a direct ownership option. An open listing allows multiple agents to compete for the sale without any exclusivity, making it less likely for a broker to be both principal and agent. Lastly, an agency listing doesn't refer to a scenario where the broker would hold interest as a principal; it generally denotes the broker's role in representing the client in various transactions. Thus, option listing correctly identifies a scenario where dual representation occurs.