ContractsIntermediateDelaware Exam
What is a 'net listing' and why is it considered controversial in Delaware?
AA listing where the seller receives a net amount after taxes; controversial due to tax issues
BA listing where the broker earns everything above a set minimum net price to the seller; controversial due to conflict of interestCorrect
CAn online MLS listing agreement; controversial due to privacy issues
DA listing with no expiration date; controversial due to enforceability issues
Why A listing where the broker earns everything above a set minimum net price to the seller; controversial due to conflict of interest Is Correct
Answer B: A listing where the broker earns everything above a set minimum net price to the seller; controversial due to conflict of interest
A net listing allows the broker to keep everything above a preset minimum net amount to the seller. This creates a significant conflict of interest and may violate Delaware license law, which is why many states prohibit or restrict net listings.
Exam Tip: Contracts
Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.
Key Contracts Terms in This Question
Related Delaware Contracts Questions
- What is 'tender' of performance in a Delaware real estate contract?Contracts
- A contingency clause in a purchase agreement:Contracts
- A Delaware buyer and seller sign a contract but the buyer is 17 years old. The contract is:Contracts
- A buyer's offer of $400,000 includes an inspection contingency allowing the buyer to withdraw if inspection reveals defects costing more than $5,000 to repair. The inspection reveals $6,000 in needed repairs. The buyer may:Contracts
- What is 'consideration' in a Delaware real estate contract?Contracts
- In Delaware, when must a real estate broker present all offers to the seller?Contracts
- Under Delaware law, an executed contract is one that has been:Contracts
- What is a 'release clause' in a Delaware subdivision mortgage?Contracts
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →