Agency
An Illinois seller signs a 'net listing' agreement, under which the broker keeps anything above a specified net amount as commission. Net listings are:
AThe preferred listing type in Illinois because the seller knows their exact proceeds
BLegal in Illinois but considered unethical by most real estate associations because they create conflicts of interest✓ Correct
CIllegal in all 50 states
DOnly permitted for commercial properties in Illinois
Explanation
Net listings create an inherent conflict of interest: the higher the sale price, the more the broker earns, which may motivate the broker to obtain the highest price possible, but it also creates pressure to overprice or manipulate the transaction. Illinois does not explicitly prohibit net listings by statute, but they are considered unethical under the NAR Code of Ethics and most state real estate boards discourage them. They should never be used without full disclosure to the seller.
Related Illinois Agency Questions
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