Agency
What is a 'net listing' concern under the fiduciary duty of loyalty in Delaware?
ANet listings ensure the agent works harder because they earn more from a higher sale price
BNet listings create a direct conflict of interest — the agent's compensation increases when the seller's net decreases — violating the duty of loyalty; they are generally discouraged or strongly disfavored✓ Correct
CNet listings are encouraged as they align the agent's and seller's interests
DNet listings are exclusively used for commercial transactions in Delaware
Explanation
In a net listing, the broker keeps everything above the seller's minimum net. This creates a fundamental conflict: the broker benefits by lowering the seller's net (offering a lower minimum) or by underrepresenting what the property will sell for. This directly violates the fiduciary duty of loyalty. Delaware does not explicitly prohibit net listings but they are strongly disfavored.
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