Practice & ContractsQuestion 103 of 120
In a net listing, the broker's commission is:
a.A fixed percentage set by law
b.Always 6% of the sale price
c.Any amount received above the seller's stated net price
d.Paid by the buyer
Explanation
In a net listing the seller sets a minimum net amount, and the broker keeps anything received above that figure as commission. Because it invites conflicts of interest, the broker must disclose the exact selling price and commission, and some states ban net listings. California permits them only with full disclosure.
Law Reference: CA Business & Professions CodePractice all 120 questions free — no signup required.
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