Between “Open Listing” and “Net Listing” agreements, which type of listing has the least protection for the broker?

UPDATED: Oct 18, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 18, 2011Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Between “Open Listing” and “Net Listing” agreements, which type of listing has the least protection for the broker?

Asked on October 18, 2011 under Real Estate Law, Nevada


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

It really depends on what you mean by "protection" here.  In an open listing the broker has the right to bring prospective buyers to see the home. If the buyer purchases your home, the broker gets a commission. The seller can give an open listing to as many brokers as they wish. In a net listing agreement the seller lists their property for sale at a specified net amount to be paid to them, and then authorizes the broker to retain as commission the difference between the price at which the property is sold and the specified net amount to be received by seller. In some states such agreements have been prohibited in order to prevent unfair dealing on the part of the broker.

The broker can manipulate the net listing more easily if they have an uneducated seller.   The open listing is more like "open commerce" where each broker can sell the property  and the first one to get a contract "wins." You decide how you mean protection here and then apply these principles.  Good luck. 

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption