California Real Estate Practice Exam

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An open listing is considered an

express bilateral contract
implied unilateral contract
express unilateral contract
implied bilateral contract

The correct answer is: express unilateral contract

An open listing is best characterized as an express unilateral contract. This type of contract occurs when a property owner allows multiple brokers to market their property simultaneously, and only the broker who brings in a buyer will receive a commission. In this scenario, the property owner makes an express offer to pay a commission to any broker who successfully brings a buyer. This is a unilateral offer because the owner is not obligated to pay anyone unless a broker fulfills the condition of finding a buyer. The agreement is express because the terms (like the commission to be paid) are clearly stated, as opposed to being implied through actions. This understanding of open listings is integral in real estate scenarios, as it highlights the nature of the relationships between property owners and brokers and how compensation is structured in different types of listings.