AgencyIntermediateCalifornia Exam

A net listing is:

AA listing that specifies a minimum net amount the seller must receive; the broker keeps everything above that amountCorrect
BA listing tied to the MLS network, under standard California agency practice
CA listing with a fixed commission regardless of sale price, as commonly applied in brokerage relationships
DA listing used exclusively for investment properties, consistent with typical listing agreement terms

Why A listing that specifies a minimum net amount the seller must receive; the broker keeps everything above that amount Is Correct

Answer A: A listing that specifies a minimum net amount the seller must receive; the broker keeps everything above that amount

A net listing sets a minimum net price the seller receives; the broker keeps any amount above that as commission. Net listings are legal in California but strongly discouraged by the DRE because they create a conflict of interest and potential for fraud.

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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