Final answer:
In an open listing, the seller must pay a commission to Broker A if the broker's actions directly led to the sale and if the listing terms require it. If the listing agreement allows the seller to sell the property independently without owing a commission, then the owner may not owe anything to Broker A.
Step-by-step explanation:
In the scenario provided, where a seller has given an open listing to several brokers without a time limit, and eventually the owner sells the property directly to a prospective buyer initially introduced by Broker A, there are a few considerations to determine who gets the commission, if anyone.
Typically, in an open listing, the seller is not exclusively tied to any one broker and only owes a commission to the broker who successfully brings a buyer who purchases the home. So, if Broker A's introduction of the buyer was the direct cause of the eventual sale, Broker A may be entitled to a commission. However, this depends on the terms of the listing agreement.
If the agreement stipulates that the owner reserves the right to sell the property themselves without paying a commission, and the owner contacted and negotiated the sale to the buyer independently of the broker, then the owner might not owe a commission to Broker A.
Option 1 suggests that the owner must pay a commission to Broker A, which could be correct if the terms of the open listing agreement obligated the seller to pay the broker who brought in the eventual buyer.
On the other hand, Option 2 maintains that the owner is not obligated to pay a commission to any broker, which could be applicable if the listing agreement allows the owner to sell the property independently without paying a commission.
Option 3 and Option 4 are not typically characteristic of an open listing, as commissions are only paid to the broker who facilitates the sale, not all brokers, and the owner typically does not have discretion to choose any broker if a specific broker was the effective cause of the sale.