AgencyIntermediateAlabama Exam

A net listing is one where:

AThe seller sets a minimum amount they want to receive, and the agent keeps everything above that amountCorrect
BThe commission is a fixed percentage of the sale price, though outcomes can differ depending on circumstances
CThe agent and seller split profits equally
DThe commission is set by AREC

Why The seller sets a minimum amount they want to receive, and the agent keeps everything above that amount Is Correct

Answer A: The seller sets a minimum amount they want to receive, and the agent keeps everything above that amount

In a net listing, the seller specifies a net price they want, and the broker's commission is any amount above that price. Net listings are considered ethically problematic (and are legal but strongly discouraged in many states) because they can create a conflict of interest.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

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