Agency

What is a net listing in Nevada and why is it controversial?

AA listing where the commission is a fixed dollar amount; it is standard practice
BA listing where the broker keeps everything above a seller's minimum price as commission; it is discouraged in Nevada✓ Correct
CA listing where the selling price is net of all fees
DA listing used only for commercial properties

Explanation

A net listing allows the broker to keep everything above the seller's net price as commission. Nevada prohibits net listings because they create a conflict of interest — the broker benefits from keeping the price as low as possible — which violates the agent's fiduciary duty to the seller.

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