Contracts

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 interest✓ Correct
CAn online MLS listing agreement; controversial due to privacy issues
DA listing with no expiration date; controversial due to enforceability issues

Explanation

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.

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