Contracts
What is a 'net listing,' and what concern does the California DRE have regarding them?
AA listing where the seller receives a minimum net amount; the DRE encourages them for their simplicity
BA listing where the broker keeps everything above a set net to the seller; the DRE discourages them due to conflict of interest✓ Correct
CA listing exclusive to commercial properties approved by the DRE
DA listing requiring full MLS cooperation; the DRE mandates them
Explanation
In a net listing, the broker's commission is everything above the seller's specified net amount. The DRE strongly discourages net listings because they create a conflict of interest — the broker may be tempted to sell at an artificially high price without the seller's knowledge of the actual commission earned.
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