Net listings and open listings are the same thing.

• A. True
• B. False
• C. Sometimes
• D. Not defined

Answer: (B)

Understanding how listing types influence compensation and exclusivity helps explain why net listings and open listings are not the same. A net listing is a compensation arrangement where the seller agrees to net a specified amount from the sale, and the broker’s fee is the difference between the sale price and that net amount. This means the broker’s pay can rise as the sale price rises, which can encourage unethical pressure to push the price higher; because of these concerns, net listings are restricted or illegal in many places.

An open listing, on the other hand, is a non-exclusive arrangement in which multiple brokers can offer to sell the property. A broker earns a commission only if they are the procuring cause of the sale, and if the seller finds the buyer on their own, no commission is owed. This setup focuses on exclusivity and who has the right to a commission, not on a mandated net amount.

So they’re distinct: one affects how the broker is paid (net amount vs difference), while the other affects how many brokers can compete and when a commission is earned.