Massachusetts License Law
A Massachusetts real estate licensee engages in 'net listing' arrangements. This is:
AA standard and encouraged listing practice
BPermitted but discouraged because of the inherent conflict of interest between the broker's and seller's interests✓ Correct
CStrictly prohibited by Massachusetts law
DOnly permitted for commercial properties
Explanation
Net listings are legal in Massachusetts but strongly discouraged because they create a direct conflict between the broker's financial interest (maximizing the spread above the seller's minimum) and the broker's fiduciary duty to the seller.
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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.
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.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
State-Specific Concepts
License Law
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