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employment contract could be implied, the broker cannot collect. Even if present, proof of such words or conduct would be difficult to establish in court. The wise broker will put the brokerage agreement in writing.

There are three general types of listing contracts:

Ø Exclusive Right-to-Sell Listing

Ø Exclusive Brokerage Listing

Ø Open Listing

An exclusive right-to-sell listing gives the listing broker the exclusive right to sell the property during the listing period. Even if the owner should sell the property by his own efforts, the broker is entitled to a commission. The best efforts of the broker can be applied with the broker being secure in the knowledge that the right of a commission and recovery of expenses for advertising and soliciting cannot be defeated by anyone during the listing period. This type of listing should be carefully explained to the property owner.

Under an exclusive brokerage listing, the owner agrees that the commission for the sale will be payable only to the broker (company) named in the listing agreement. The owner also agrees that the property will not be listed with other brokers (companies). However, if the property is sold by the owner to a buyer found by the owner, the broker is not entitled to a commission. An exclusive brokerage listing permits application of the best efforts by the broker unhampered by possible interference from other brokers but still in direct competition with the seller.

Under an open listing, the owner lists property with a broker and agrees to pay a commission if the broker sells the property. The owner retains the right, however, to list the property with other brokers.

In an open listing, the owner pays a commission to the listing broker (company) who actually sells the property. If the owner sells the property himself, without the aid of a broker, no commission is due.

While open listings are legal and ethical, many brokers do not like them. Open listings are likely to produce quarrels over commissions when several brokers have worked with the same buyer for the property. Also brokers are reluctant to make great effort or incur expenses when the owner or another broker might sell the property at any time. In addition, an open listing might be given to three different brokers at three different prices. Having several brokers quoting different prices for the same property reflects adversely on the honesty and integrity of the real estate business. Many brokers will never take an open listing in their entire careers.

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