New Jersey License Law

Under NJ license law, which of the following acts constitutes 'net listing,' which is prohibited by NJREC?

AA listing where the commission is a flat fee
BA listing where the broker keeps everything above a specified net price to the seller✓ Correct
CA listing that expires after 90 days
DA listing shared between two brokers

Explanation

A net listing—where the broker's commission is the amount by which the sale price exceeds a specified net to the seller—is discouraged in NJ because it creates a conflict of interest that may cause the broker to act against the seller's interests.

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