Massachusetts License Law
A Massachusetts licensee who receives a net listing agreement (where the broker keeps everything above a stated amount) should be aware that:
ANet listings are required by Massachusetts law
BNet listings are strongly discouraged and may violate the broker's fiduciary duty if the broker profits excessively✓ Correct
CNet listings are required to be filed with the Board of Registration
DNet listings are only permitted for commercial properties
Explanation
While not explicitly discouraged in Massachusetts, net listings create a significant conflict of interest and may violate the broker's fiduciary duty to the seller if the broker profits disproportionately. Most professional associations and the Board strongly discourage their use.
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
Math Concepts
State-Specific Concepts
License Law
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