Colorado License LawIntermediateColorado Exam
In Colorado, a 'net listing' (where the broker keeps everything above a minimum price) is:
AThe preferred listing type used by experienced brokers, as is typical in most transactions
BDiscouraged by the Colorado Real Estate Commission as it creates a conflict of interestCorrect
CIllegal under all circumstances
DOnly allowed for commercial transactions
Why Discouraged by the Colorado Real Estate Commission as it creates a conflict of interest Is Correct
Answer B: Discouraged by the Colorado Real Estate Commission as it creates a conflict of interest
Net listings create a serious conflict of interest because the broker benefits more from a higher price, but the seller is best served by the highest possible sale price above the net. The Colorado Real Estate Commission strongly discourages net listings, though they may not be legal but strongly discouraged per se.
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
RedliningAn illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.
Math Concepts
State-Specific Concepts
License Law
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