Agency & LawQuestion 38 of 120
A 'net listing,' where the broker keeps any amount above a price set by the seller, is:
a.Always the best option for sellers
b.Discouraged and heavily restricted because of conflict-of-interest concerns
c.Required for all commercial listings
d.The standard listing type in Texas
Explanation
Net listings create a conflict of interest and potential for the broker to take advantage of the seller, so they are restricted and must be handled carefully where allowed. Most agents avoid them to prevent claims of overreaching.
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Related questions on this topic
- Placing client or earnest money funds into a broker's personal or general business account instead of a proper trust or escrow account is called:
- A listing agreement that gives one broker the right to sell but allows the seller to sell on their own without owing a commission is a(n):
- Under an 'exclusive right to sell' listing, the broker earns a commission:
- The concept of 'procuring cause' is most relevant when determining:
- Which of the following actions by an agent would MOST likely breach the fiduciary duty of loyalty?
- An agent must present to the seller:
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