Iowa License Law
Iowa's IREC rule regarding 'net listings' states that they:
AAre encouraged as a transparent commission structure
BAre discouraged and may be considered a violation if the broker takes unconscionable advantage of the seller due to the inherent conflict of interest✓ Correct
CAre required to be approved by the IREC before use
DAre the only type of listing allowed for commercial properties
Explanation
Net listings create an inherent conflict of interest, as the broker benefits from a higher sale price only above the seller's net floor. Iowa IREC rules and ethical standards discourage net listings because they can lead to overpricing, underpricing, or taking unfair advantage of an unsophisticated seller.
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