New York License Law
In New York, 'net listings' (where the broker keeps everything above a stated net price) are:
ALegal and commonly used
BSpecifically discouraged or strongly discouraged because of the inherent conflict of interest✓ Correct
COnly allowed in commercial real estate
DAllowed if the DOS approves each transaction
Explanation
Net listings are either discouraged or strongly discouraged in New York because they create an inherent conflict of interest—the broker's compensation directly competes with the seller's interest in getting the highest possible price. Many state licensing laws ban them outright.
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