Alaska License LawIntermediateAlaska Exam

A licensee in Alaska who makes a 'net listing' agreement (where the broker keeps everything above a target price) should know that such agreements:

AAre the most common form of listing in Alaska, though many experienced professionals would note some exceptions depending on the circumstances
BAre discouraged or highly discouraged in Alaska because they create conflicts of interest between the broker's and seller's interestsCorrect
CAre only permitted for commercial properties
DAre a standard practice and not regulated

Why Are discouraged or highly discouraged in Alaska because they create conflicts of interest between the broker's and seller's interests Is Correct

Answer B: Are discouraged or highly discouraged in Alaska because they create conflicts of interest between the broker's and seller's interests

Net listings are discouraged or strongly discouraged in most states, including Alaska, because they create an inherent conflict of interest — the broker benefits from a lower sale price (seller's minimum) rather than the highest possible price. This conflicts with the broker's fiduciary duty to the seller.

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