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.
Key Alaska License Law Terms in This Question
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
State-Specific Concepts
License Law
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