What is a 'net listing,' and what concern does the California DRE have regarding them?
Why A listing where the broker keeps everything above a set net to the seller; the DRE discourages them due to conflict of interest Is Correct
Answer B: A listing where the broker keeps everything above a set net to the seller; the DRE discourages them due to conflict of interest
Exam Tip: Contracts
Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.
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Key Terms to Know
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Math Concepts
State-Specific Concepts
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