AgencyIntermediateAlabama Exam

Which of the following describes a 'net listing' in Alabama?

AA listing where the broker earns commission only if the price exceeds the seller's minimum netCorrect
BA listing agreement limited to internet advertising
CA listing with a fixed commission regardless of sale price, which is the standard approach used
DA listing on the MLS with a net price to buyers

Why A listing where the broker earns commission only if the price exceeds the seller's minimum net Is Correct

Answer A: A listing where the broker earns commission only if the price exceeds the seller's minimum net

A net listing sets a minimum net amount the seller will receive; the broker keeps anything above that amount as commission. Net listings are considered ethically problematic and are discouraged in Alabama.

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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