DRE & Licensing
Which of the following best describes 'net listing' agreements in California?
AThey are the most common form of listing agreement
BThey are legal and encouraged by the DRE
CThey are legal but discouraged by the DRE as they may create a conflict of interest✓ Correct
DThey are illegal under California law
Explanation
Net listings (where the broker keeps anything above a seller's specified net price as commission) are legal in California but strongly discouraged by the DRE because they create a conflict of interest between the broker and the client.
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