Agency
In Louisiana, a 'net listing' is prohibited primarily because it creates which concern?
AIt requires too much paperwork for LREC compliance
BA conflict of interest where the broker's financial benefit (keeping everything above the net) is directly opposed to the seller's interest in maximizing their sale price✓ Correct
CIt is not permitted under MLS rules
DIt creates potential dual agency automatically
Explanation
Net listings are discouraged in Louisiana because they create an inherent conflict of interest — the broker benefits by getting the highest price (maximizing their profit), which conflicts with the duty to get the best price for the seller. The broker's interests are opposed to the client's.
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Key Terms to Know
Dual Agency
A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Math Concepts
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