Agency
A Minnesota real estate agent receives a net listing offer: the seller will pay the agent everything above $280,000. The property could sell for $350,000. What is the agent's ethical obligation?
AAccept it since it rewards finding a high buyer
BDecline it since net listings create a direct conflict of interest and are prohibited in Minnesota✓ Correct
CAccept only if disclosed to all parties
DAccept if the potential overage is under $25,000
Explanation
Net listings are prohibited in Minnesota because they create a direct conflict between the agent's financial interest and the seller's interest in maximizing the sale price. The more the agent sells the property for above the minimum, the more the agent earns - incentivizing the agent to keep the seller's minimum price low.
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