Contracts
A Georgia listing contract that contains a net listing provision is considered:
AStandard practice encouraged by GREC
Blegal but strongly discouraged and discouraged in Georgia✓ Correct
CAllowed only for commercial properties
DA type of buyer agency agreement
Explanation
Net listings are legal but strongly discouraged in Georgia. A net listing (where the broker keeps everything above a set net price to the seller) creates a conflict of interest and is discouraged under Georgia license law.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
State-Specific Concepts
GREC RegulationLicense Law
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