What type of listing involves the owner paying a commission to the successful broker?

The correct response is based on the nature of the listing agreements in real estate. An open listing is a non-exclusive arrangement where the property owner can list the property with multiple brokers and retain the right to sell the property themselves without owing a commission. When a particular broker successfully finds a buyer, that broker then earns the commission, which the owner has agreed to pay.

In contrast, other types of listings, such as exclusive right of sale listings and exclusive agency listings, create a more defined relationship between the broker and the owner, typically requiring a commission to be paid to the broker regardless of who brings in the buyer (in the case of exclusive right) or only if the broker is responsible for the sale (in the case of exclusive agency). A net listing, while involving payment of a commission, does so based on the amount received above a predetermined price rather than a straightforward commission agreement.

Understanding the nuances of these agreements is vital for both real estate professionals and property owners, as they dictate how commissions are structured and how the relationship is managed between parties involved.