BIC TIP #1119: Open Houses for Another Firm
Hosting or participating in an open house for a listing held by another brokerage is not a simple courtesy—it carries real agency and liability consequences that brokers must understand.
Most listing agreements extend indemnity protections to the listing firm, not to outside brokers. When a broker affiliated with a different brokerage company seeks to host or assist with an open house on behalf of the seller, the only permissible agency role for that broker is subagent of the seller. There is no option to act as a buyer’s agent or dual agent in this context.
Failing to recognize this distinction can expose brokers and firms to unintended liability and compliance issues. Before agreeing to host an open house for another firm, confirm the agency role in writing, understand the indemnity provisions of the listing agreement, and ensure all disclosures are properly handled.
When it comes to open houses, clarity on agency is not optional—it is essential.
