Mississippi License Law
Which of the following activities by a Mississippi real estate licensee would be considered 'net listing,' and why is it discouraged?
AListing a property on the MLS; it reduces competition
BAn agreement where the broker keeps everything above the seller's net price; it creates a conflict of interest and is discouraged or discouraged by MREC✓ Correct
CListing a property for sale and lease simultaneously; it confuses buyers
DListing a property below market value; it harms the seller
Explanation
A net listing gives the broker all proceeds above the seller's desired net amount. This creates a serious conflict of interest because the broker benefits from keeping the price as high as possible rather than acting in the seller's best interest. Most states, including Mississippi, prohibit or strongly discourage them.
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