ContractsQuestion 60 of 100
A net listing, which is discouraged or restricted in many states, is one where the broker's commission is:
a.A fixed percentage set by law
b.Always paid by the buyer
c.Any amount received above a price the seller specifies
d.Set at zero
Explanation
In a net listing, the seller sets a net amount they must receive, and the broker keeps anything above that figure as commission. This creates a conflict of interest and potential for abuse, so many jurisdictions restrict or prohibit it. Brokers must always act in the seller's best interest.
Practice all 100 questions free — no signup required.
Related questions on this topic
- An option contract gives the optionee:
- A listing agreement in which the broker earns a commission regardless of who sells the property, even the owner, is a(n):
- In an exclusive agency listing, the seller may avoid paying the broker's commission if:
- Specific performance is a legal remedy in which a court orders:
- The cancellation of a contract that returns the parties to their positions before it was formed is called:
- In many New York residential transactions, attorneys review and negotiate the contract of sale before it becomes binding during a period informally called:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against New York Real Estate Salesperson Licensing Exam · How we review