What is a common reason for lawsuits concerning open listings?

A common reason for lawsuits concerning open listings revolves around the unclear procuring cause of the sale. Open listings allow multiple brokers to list a property, which can lead to confusion about which broker is entitled to a commission if the property sells. The term "procuring cause" refers to the agent who primarily brings about the sale—a crucial point in determining commission rights.

In an open listing scenario, if more than one broker is involved and the seller does not clearly communicate which broker was responsible for bringing the buyer, disputes can arise. This ambiguity often leads to legal issues when multiple brokers feel entitled to a commission for the same sale. Thus, establishing a clear understanding of who initiated or facilitated the transaction is essential, and it is typically this lack of clarity that invites litigation in cases involving open listings.