Contracts

A net listing in New York is:

ARequired for commercial properties
BLegal but considered unethical and strongly discouraged because it creates a conflict of interest✓ Correct
CProhibited by statute
DCommon practice for luxury residential properties

Explanation

A net listing (where the broker keeps everything above a specified net price as commission) is legal in New York but is considered unethical and is strongly discouraged because it creates a conflict of interest between the broker's financial interest and the client's interest.

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