Louisiana License Law
Under Louisiana License Law, 'net listing agreements' (where the broker's commission is everything above a set minimum price) are:
ACommonly used and encouraged by the LREC
Bdiscouraged or strongly discouraged as they create a conflict of interest between broker and client✓ Correct
CRequired for commercial transactions over $1 million
DLegal only for vacant land sales
Explanation
Net listings create an inherent conflict of interest because the broker profits more by obtaining a higher price at the client's expense. While not always explicitly legal but strongly discouraged in Louisiana, they are strongly discouraged by the LREC and considered a violation of the licensee's duty of loyalty.
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