Agency (alternative)
In Maryland, a 'net listing' is prohibited primarily because:
AIt results in too low a commission
BIt creates an inherent conflict of interest between the agent's financial interest and the seller's interest in getting the highest price✓ Correct
CMREC does not recognize net listings as valid contracts
DIt is illegal under federal real estate law
Explanation
Net listings are discouraged because the broker keeps everything above the seller's net — creating an incentive for the broker to sell at the lowest possible price, directly conflicting with the duty of loyalty to the seller.
Related Maryland Agency (alternative) Questions
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