Arizona License Law

An Arizona broker receives a net listing from a seller, which means the broker keeps everything above a set amount as commission. This practice is:

AStandard and encouraged by ADRE
BPermitted if the amount exceeds $500
CLegal only for commercial transactions
DProhibited under Arizona Commissioner's Rules because it creates a conflict of interest✓ Correct

Explanation

Net listings are prohibited under Arizona Commissioner's Rules because they create a direct conflict of interest — the broker has a financial incentive to obtain the highest possible price at the seller's expense, rather than acting in the seller's best interest.

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