Michigan License Law
Under Michigan law, a licensee who engages in 'net listing' agreements (where the agent keeps everything above a minimum net to the seller) is:
APermitted if the seller signs a disclosure
Bdiscouraged because it creates a conflict of interest between agent and client✓ Correct
CAllowed for commercial transactions only
DPermitted only if the commission does not exceed 10%
Explanation
Net listings are discouraged in Michigan because they create a severe conflict of interest — the agent benefits by getting the highest possible price above the seller's net, tempting the agent to prioritize their own gain over the seller's interests.
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