Legal Definitions - simple listing

A simple listing, also known as an open listing, is a type of non-exclusive agreement between a property owner and a real estate broker to sell a property. Under a simple listing, the owner retains the right to sell the property themselves without owing any commission to a broker. The owner can also engage multiple brokers simultaneously to market the property. In such a scenario, only the broker who successfully finds a buyer and closes the sale is entitled to a commission. If the owner sells the property independently, no broker receives a commission.

Here are some examples to illustrate this concept:

• Example 1: Residential Home Sale

  Maria wants to sell her vacation home. Instead of signing an exclusive agreement with one real estate agent, she tells three different agents in the area that she's open to them bringing buyers, but she's not committing to any single one. She also puts a "For Sale by Owner" sign in her yard and posts the listing on a popular online marketplace. If Agent A brings a buyer who closes the deal, Agent A gets the commission. If Maria finds a buyer through her online ad, she pays no commission to any of the agents. This demonstrates a simple listing because Maria can work with multiple agents and sell the property herself without obligation to any specific broker.

• Example 2: Commercial Land Development

  A company owns a large undeveloped parcel of land suitable for commercial development. They decide to offer it as a simple listing, contacting several commercial real estate firms to see if they have interested clients. The company also directly approaches a few large developers they know might be looking for such a site. If one of the commercial real estate firms successfully brokers a deal, they earn their commission. However, if the company's direct outreach to a developer results in a sale, no real estate firm is paid. This illustrates the non-exclusive nature where multiple parties can attempt to sell the property, and only the successful party (or the owner) benefits.

• Example 3: Unique Asset Sale

  An art collector decides to sell a valuable painting from their private collection. They inform two specialized art brokers that they are willing to consider offers brought by either, but they are also actively showcasing the painting to other collectors in their network. They make it clear that only the broker who secures a successful sale will receive a fee, and if they sell it directly to another collector, no broker will be compensated. This scenario exemplifies a simple listing because the owner maintains the flexibility to sell through multiple channels, including directly, without being tied to a single agent or broker.