Agency
What is a 'net listing' and why is it controversial in California?
AA listing that requires internet marketing; controversial because not all agents use it
BA listing where the broker keeps everything above a set price; controversial because it creates a conflict of interest✓ Correct
CA listing with no commission; controversial because brokers won't take them
DA listing for multiple properties; controversial because of complexity
Explanation
A net listing allows the broker to keep any sale proceeds above a price set by the seller. It is legal in California but heavily discouraged and potentially a violation of the broker's fiduciary duty because the broker's financial interest conflicts with getting the seller the highest price.
Related California Agency Questions
- Which statement about open listings is correct?
- Under California law, which document is used to confirm the agency relationship in a residential real estate transaction?
- The California Agency Disclosure law (Civil Code §2079) requires an agent to provide the Agency Disclosure form to buyers and sellers at what point in the transaction?
- Which type of agency relationship is created when a principal approves an act already performed without prior authorization?
- When does a California agency relationship typically terminate in a residential sale?
- A 'designated agency' arrangement in California refers to:
- What is 'ratification' in agency law?
- Which of the following would automatically terminate an agency relationship in California?
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