Colorado License Law
In Colorado, a 'net listing' (where the broker keeps everything above a minimum price) is:
AThe preferred listing type used by experienced brokers
BDiscouraged by the Colorado Real Estate Commission as it creates a conflict of interest✓ Correct
CIllegal under all circumstances
DOnly allowed for commercial transactions
Explanation
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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