Contracts
In Montana, a 'net listing' agreement, where the broker keeps everything above a specified net amount to the seller, is:
AThe most common type of listing in Montana
BGenerally discouraged or discouraged because it creates a conflict of interest between the broker and the seller✓ Correct
CRequired for commercial property transactions
DPermitted without restriction for agricultural properties
Explanation
Net listings create an inherent conflict of interest because the broker is incentivized to negotiate the highest possible price—not to get the seller the best deal. Montana discourages or prohibits net listings for this reason, and they may constitute a violation of the broker's fiduciary duty if the broker profits at the seller's expense.
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