Final answer:
An open listing is illegal in many states and open to fraudulent dealing due to the lack of exclusivity and clear agreements.
Step-by-step explanation:
An open listing is illegal in many states and open to fraudulent dealing. An open listing is a type of real estate listing agreement in which a property owner can list their property with multiple brokers simultaneously. However, the owner is not obligated to pay a commission to any broker unless the property is sold by that specific broker.
Open listings are considered risky because they lack exclusivity, which can lead to fraudulent activities. For example, multiple brokers may claim to have found a buyer for the property and demand a commission, even if they were not the actual cause of the sale. Open listings are particularly vulnerable to fraud due to the absence of a clear agreement and the potential for disputes over the claim to a commission.
Therefore, the correct answer is a. An open listing.