Agency

In Hawaii, what is a 'net listing' and why is it problematic?

AA. A listing with a set net price; it is standard practice
BB. A listing where the broker keeps everything above the seller's minimum price; it creates a conflict of interest✓ Correct
CC. A listing using net assets to determine commission; it benefits the seller
DD. A listing on the MLS without a commission; it is illegal everywhere

Explanation

A net listing gives the broker an incentive to get the lowest possible price for the seller (just above the net), directly conflicting with the agent's duty to get the best price for the client.

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