AgencyIntermediateDelaware Exam

What is a 'net listing' and why do most Delaware experts caution against them?

AA listing where the agent earns a flat fee; cautioned against because it's unclear to sellers
BA listing where the agent earns everything above the seller's minimum net; cautioned against due to the agent's conflict of interestCorrect
CAn MLS listing with no photos; cautioned against for marketing reasons
DA listing with no expiration date; cautioned against for legal reasons

Why A listing where the agent earns everything above the seller's minimum net; cautioned against due to the agent's conflict of interest Is Correct

Answer B: A listing where the agent earns everything above the seller's minimum net; cautioned against due to the agent's conflict of interest

A net listing creates a dangerous conflict of interest: the agent benefits from a higher sale price but may be tempted to undersell at the minimum net and pocket a large spread. Most real estate experts and Commission regulations caution against or prohibit net listings.

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.

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