What defines an open listing in real estate?

An open listing in real estate is characterized by its permissive nature, allowing multiple brokers to represent the same property simultaneously. The seller of the property can engage with several real estate agents or brokers without entering into an exclusive agreement with any one of them. This type of listing offers flexibility to sellers, as it increases the chances of selling the property by tapping into the networks of various agents.

The key advantage of an open listing is that it creates competition among brokers. Each one tries to secure a buyer since whoever brings in a buyer first can earn the commission. This setup encourages brokers to market the property actively.

While the other options describe different kinds of listing agreements, they do not accurately reflect the essence of an open listing. For instance, an exclusive listing gives rights to a single broker (which is the opposite of an open listing), a time-limited sale refers to exclusive time listings, and restrictions to residential properties indicate specific property types, which is unrelated to the concept of an open listing. Thus, the defining characteristic of an open listing aligns perfectly with the allowance of multiple brokers to represent the property.