In Colorado, a 'net listing' is:
Why B. A listing where the broker keeps everything above a specified net price as their commission, which is considered unethical and potentially legal but strongly discouraged in Colorado Is Correct
Answer B: B. A listing where the broker keeps everything above a specified net price as their commission, which is considered unethical and potentially legal but strongly discouraged in Colorado
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.
Key Agency Terms in This Question
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Key Terms to Know
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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