Delaware License LawIntermediateDelaware Exam

What does 'net listing' mean, and how is it treated under Delaware license law?

AA listing where the agent receives a fixed percentage commission regardless of sale price
BA listing where the broker keeps everything above a stated net amount to the seller — generally disfavored and potentially discouraged due to conflicts of interest and risk of fraudCorrect
CAn online listing service where the property is marketed on multiple websites
DA listing agreement requiring the agent to net the seller at least the appraised value

Why A listing where the broker keeps everything above a stated net amount to the seller — generally disfavored and potentially discouraged due to conflicts of interest and risk of fraud Is Correct

Answer B: A listing where the broker keeps everything above a stated net amount to the seller — generally disfavored and potentially discouraged due to conflicts of interest and risk of fraud

A net listing allows the broker to keep any sale proceeds above the seller's stated minimum net. It creates an inherent conflict of interest because the broker benefits from a higher price but has an incentive to underprice the seller's minimum net.

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