Is an open listing legally binding?

Yes if the parties manifest intent, sign the agreement, and the contract meets state contract law elements. Electronic signatures are valid under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted.

Who gets paid if two brokers show the buyer?

The contract should specify how competing procuring broker claims are resolved. Absent clear terms, disputes are settled by evidence of who first produced a ready, willing, and able buyer meeting seller terms.

Can an Open Listing be eSigned?

Yes. Electronic signatures meet ESIGN/UETA tests when intent, consent, attribution, and record retention are present. For consumer‑facing disclosures, provide required ESIGN consumer disclosure per 15 U.S.C. §7001(c).

Is notarization required?

Listings typically do not require notarization; deeds and conveyance documents do. Check state or local rules for unique requirements, and use RON where permitted if a notarization is needed.

How do I revoke or cancel the listing?

Follow termination clauses in the agreement; if none, send written notice per contract or applicable state law. Retain proof of delivery and date for dispute purposes.

What if names or dates are wrong?

Minor clerical errors often can be corrected by amendment signed by all parties. Significant mismatches may affect enforceability; consider attorney review and reexecution if necessary.

Electronic Signature
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Open Listing Agreement

Open Listing Agreement

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OPEN LISTING AGREEMENT SALES5

When Recorded Mail to:

Effective Date

County and State of Real Property

BROKERSELLER

Broker (Name, Address, Zip Code & Phone)

Seller (Name, Address, Zip Code & Phone)

General Description of Buildings or Improvements

Personal Property Included in Sale

Real Property (Address or Location)

Matters Affecting Property But Not of Record

Real Property (Legal Description)

Existing Encumbrances (Nature, Amount, etc.)

Title Held by Seller

Terms and Conditions of Sale Total Purchase Price (Note if essential or preferred)

Listing Period

From to

with a day Carryover Period

Other:

Broker's Commission or Fee

% of price of Sale.

Fixed at $

Multiple listing Service (MLS)

Seller does does not

to listing Property with MLS

Additional Provisions

Signature of Broker

Signature of Seller

Signature of Broker

Signature of Seller

INSTRUCTIONS: Prepare and execute this agreement in duplicate.

NOTE: This form allows a sale by another broker or directly by Seller without payment of commission to the Broker herein.

STANDARD PROVISIONS

1. Open Listing. In consideration of Broker's agreement to use his professional efforts to secure a ready, willing, and able purchaser for the Real Property at the Price and Terms and Conditions of Sale described herein, Seller agrees to give Broker an open listing on the Real Property for the duration of the Listing Period. It is understood that this is not an exclusive listing nor an exclusive right to sell the Property, and that Seller is free to list the Property with other brokers and sell the Property thereby, or to directly and personally sell the Property without commission to Broker herein, unless the sale is to a purchaser first shown the Property by Broker. Furthermore, any sale or exchange made within the Carryover Period to a purchaser who was shown the subject Real Property by Broker during the Listing Period will be treated as a "sale by Broker within the Listing Period" and Broker will be entitled to his full commission therefore.

2. Broker's Obligation. In furtherance of the above, Broker agrees to use his professional efforts to secure a ready, willing, and able purchaser for the Real Property at the Price and Terms and Conditions of Sale described herein, and specifically agrees:

To carefully inspect the Property and secure adequate information regarding it.
To advertise the Property for sale, and if so agreed by Seller and as indicated on the reverse side hereof, to list and brochure the property with the multiple listing service (MLS) which operates in the area of the Property.
To permit the Sellers to terminate and cancel this listing agreement within the Listing Period in return for payment of the agreed Commission or Fee.

3. Seller's Obligations. In furtherance of the above, Seller agrees to cooperate with Broker in his professional efforts and specifically agrees:

To provide Broker with additional information concerning the Real Property as necessary, particularly the information required by the multiple listing service, if Seller has consented to its use.
To allow Broker to place on the Property his real estate sign in keeping with the applicable county regulations and municipal ordinances.
To permit Broker to show the Property to prospective purchasers at reasonable hours.
To permit Broker to accept from prospective purchasers on Seller's behalf earnest money or deposits against the Price and to issue a receipt therefore.
To enter into a written agreement with a purchaser secured by Broker who is ready, willing, and able to purchase the Property at the Price and Terms of Sale.
To close escrow and/or give occupancy within 90 days of the execution of the purchase contract.
To provide marketable title within the escrow period by furnishing title insurance, where applicable, and the appropriate title conveying deeds or other documents.

h. To pay to Broker his Commission or Fee at the close of escrow and to permit escrow officer to pay such Commission or Fee directly from the proceeds of the sale if sufficient funds are available therein.

4. Broker's Warranties. Broker warrants that he is duly licensed by the Arizona State Real Estate Department as a broker, and his salespersons are similarly licensed as salespersons.

5. Seller's Warranties. Seller warrants that he is the owner of the Real Property and holds title as indicated herein.

6. General Provisions. The parties incorporate by this reference the terms of the CONTRACTUAL BILL OF RIGHTS FOR ARIZONA as though fully set forth herein.

What an Open Listing Agreement Is and how it works

An Open Listing Agreement is a non‑exclusive real estate listing contract under which a property owner may engage multiple brokers to procure a buyer. Only the broker who produces a ready, willing, and able buyer entitled to the seller's terms earns a commission; the seller may sell directly without paying a commission. Open listings typically describe the property, the listing period, the commission formula, and the seller's obligations. Because multiple brokers can compete simultaneously, open listings are less restrictive than exclusive listings and are used when broad market exposure is desired without committing to a single agent.

When an Open Listing Agreement is useful

Open listings suit sellers who want flexibility to work with multiple brokers or sell independently while still offering a commission to any procuring broker. They reduce commitment and may lower listing costs, but they can also dilute broker motivation and reduce coordinated marketing.

Who commonly completes an Open Listing Agreement

Typical participants include sellers, listing brokers, cooperating brokers, and sometimes in‑house legal or transaction coordinators who ensure terms are clear and enforceable.

For sale by owner — Owners who want broad exposure without exclusive representation and who accept the risk of less coordinated marketing.
Independent brokers — Agents who will attempt to procure buyers without an exclusive commitment, often paid only if they produce a buyer.
Multiple brokerage firms — Brokerages seeking opportunistic listings where several firms can share the chance to earn commission.

Step-by-step: Completing an Open Listing Agreement

Follow these sequential steps to prepare a professional Open Listing Agreement and reduce errors.

01

Identify parties: Enter full legal names of seller and each broker; include business entity names where applicable.
02

Describe property: Provide full address, legal description, parcel or MLS number, and any exclusions.
03

Set commission terms: Specify commission percentage or flat fee and conditions for payment to procuring broker.
04

Define listing period: List precise start and end dates and state termination or extension conditions.

Typical workflow for listing to closing

This sequence outlines the common routing and actions once an Open Listing Agreement is in place.

Execute agreement: Seller and broker(s) sign the listing, confirming commission and term.
Market property: Any engaged broker may advertise and show the property under the agreed terms.
Receive offers: Offers are submitted; the seller negotiates directly or through brokers.
Close transaction: If a procuring broker produced the buyer, commission is paid per agreement at closing.

Essential clauses to include in a professional Open Listing Agreement

Include clear, enforceable clauses to reduce commission disputes and ensure compliance with applicable laws and MLS rules.

Property identification

Precise legal description and address, including parcel or MLS ID and any accessory structures or excluded items to avoid ambiguity at closing.

Commission and payment

Explicit calculation method, payment timing, contingency on buyer financing, and any split between cooperating brokers or referral fees.

Listing duration

Start and end dates, automatic extension rules if any, and procedures for early termination or rescission by either party.

Broker responsibilities

Marketing obligations, MLS submission details, showing protocols, and disclosure duties to prospective buyers.

Seller warranties

Statements about ownership, authority to sell, liens, and required disclosures under state law to protect buyers and brokers.

Dispute resolution

Specify governing law, jurisdiction, and preferred dispute resolution method such as arbitration or litigation venue.

Digital signing and technical considerations

Use eSignature workflows that preserve intent, attribution, and an auditable trail when completing an Open Listing Agreement online.

File formats: PDF and DOCX are standard for preserving layout and metadata.
Authentication: Email, SMS, or stronger second‑factor methods help attribute signatures reliably.
Audit trail: Timestamp, IP, and action log are required to demonstrate intent and execution.

Primary legal and transactional risks

Commission disputes: Misstated broker entitlement can lead to litigation or withheld commission.

Incorrect names: Mismatched parties can invalidate enforceability at closing.

Ambiguous terms: Vague commission triggers create interpretation disputes.

Noncompliance: Failing to follow MLS or state law rules risks penalties.

Retention lapses: Destroying records early may impair defenses in claims.

Authentication failure: Insufficient signature attribution can nullify eSigned agreements.

Common preparation mistakes to avoid

Using informal or abbreviated party names that do not match title documents, which complicates closings and commission payments.
Failing to specify the exact commission calculation or what constitutes a procuring broker, leaving room for conflicting claims.
Neglecting to include a clear listing period and termination procedures, resulting in uncertainty about broker rights after the listed dates.
Overlooking MLS rules or local brokerage policies that may restrict open listings or require additional disclosures.

Practical tips for accurate and efficient completion

Adopt consistent practices to minimize errors, speed processing, and reduce disputes over commission and closing details.

Verify legal names early

Compare seller and broker names against title reports and license records before signing to prevent mismatches that could derail closing or commission claims.

Be specific about commission triggers

Define what counts as a procuring broker event, whether it requires a written offer, an executed contract, or an unconditional buyer meeting seller terms.

Use standardized date formats

Enter dates as MM/DD/YYYY consistently; ambiguous date formats create disputes over listing term and notice deadlines.

Keep audit-ready records

Preserve signed copies, communications, and marketing logs in an accessible repository to support attribution and defend against claims.

How Open Listing Agreements differ from exclusive listing types

Compare open listings with exclusive agency and exclusive right to sell agreements to understand obligations and commission outcomes.

Criteria	Open Listing	Exclusive Agency	Exclusive Right to Sell
Broker exclusivity
Seller direct sale	seller may sell without commission	seller may sell without commission to avoid paying broker	seller pays commission regardless
Broker incentive	lower coordinated effort	moderate incentive	highest incentive
Commission entitlement	only procuring broker paid	only procuring broker paid	broker paid for any sale during term

Typical eSignature vendor comparison for executing Open Listing Agreements

Select an eSignature vendor that supports multi‑signer workflows, audit trails, and the authentication level required by your transaction; signNow is listed first for comparison.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varied	Varied	Varied	Varied
Bulk Send	Yes	Yes	Yes	Yes	Yes
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions about Open Listing Agreements

Answers to common questions about validity, commission disputes, eSigning, and termination procedures for Open Listing Agreements.

Need help? Contact support

Is an open listing legally binding?
Yes if the parties manifest intent, sign the agreement, and the contract meets state contract law elements. Electronic signatures are valid under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted.
Who gets paid if two brokers show the buyer?
The contract should specify how competing procuring broker claims are resolved. Absent clear terms, disputes are settled by evidence of who first produced a ready, willing, and able buyer meeting seller terms.
Can an Open Listing be eSigned?
Yes. Electronic signatures meet ESIGN/UETA tests when intent, consent, attribution, and record retention are present. For consumer‑facing disclosures, provide required ESIGN consumer disclosure per 15 U.S.C. §7001(c).
Is notarization required?
Listings typically do not require notarization; deeds and conveyance documents do. Check state or local rules for unique requirements, and use RON where permitted if a notarization is needed.
How do I revoke or cancel the listing?
Follow termination clauses in the agreement; if none, send written notice per contract or applicable state law. Retain proof of delivery and date for dispute purposes.
What if names or dates are wrong?
Minor clerical errors often can be corrected by amendment signed by all parties. Significant mismatches may affect enforceability; consider attorney review and reexecution if necessary.

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