Which of the following best defines an open listing?

An open listing is best defined as a contract where the owner pays any broker who finds a buyer. This type of listing gives homeowners the flexibility to list their property with multiple brokers simultaneously. Under an open listing, the owner is not contractually obligated to work exclusively with one broker; instead, any broker who successfully brings a buyer to the owner will earn the commission. This arrangement fosters competition among brokers, as they are motivated to find a buyer to earn their fee.

The other choices do not accurately describe an open listing. For instance, an exclusive listing implies that the property is only listed with one broker, which contrasts with the concept of multiple brokers being involved. A type of rental agreement would refer to leasing terms rather than a real estate sale. Lastly, a non-binding agreement between friends does not involve the formalities or financial incentives present in real estate transactions. Thus, the characteristics associated with an open listing align specifically with the arrangement described in the correct answer.