Contracts
In Florida, a 'net listing' (where the broker keeps everything above a specified price as commission) is:
ACommonly used for commercial transactions
BFrowned upon and potentially discouraged by FREC rules due to conflicts of interest✓ Correct
CLegal and common in all Florida real estate transactions
DRequired for vacant land sales
Explanation
Net listings create a significant conflict of interest because the broker profits from getting the highest possible price at the seller's potential expense. FREC rules strongly discourage or prohibit net listings, and many state boards consider them unethical.
Related Florida Contracts Questions
- A Florida seller includes a clause in the listing that they have the right to cancel the listing with 30 days' notice. This is known as a:
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- A Florida buyer includes a 'financing contingency' in their offer. The contingency states that the offer is contingent on the buyer obtaining a $300,000 mortgage at no more than 6.5% interest for 30 years. The buyer is offered 6.75% by the lender. The buyer may:
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