Contracts
A Pennsylvania 'net listing' is illegal primarily because:
AIt requires PREC approval that is never given
BIt creates a direct conflict between the broker's financial interest and the seller's best interest✓ Correct
CIt is prohibited by the National Association of Realtors Code of Ethics
DPennsylvania courts have never enforced a net listing
Explanation
Net listings are legal but strongly discouraged in Pennsylvania because they create an inherent conflict of interest — the broker earns everything above the minimum net, so they benefit financially from accepting the lowest offer that meets the seller's minimum. This directly conflicts with the broker's fiduciary duty to obtain the best possible price for the seller.
Related Pennsylvania Contracts Questions
- An option contract in real estate gives the optionee:
- Pennsylvania's 'as-is' real estate contracts are generally enforceable. However, the as-is provision does NOT protect a seller from liability for:
- A buyer makes an offer on a Pennsylvania property with a 'Due Diligence' contingency period of 14 days. During this period, the buyer:
- A Pennsylvania listing agreement is a contract between:
- Pennsylvania's 'Anti-Deficiency' protections for certain residential mortgages mean:
- What is an 'inspection contingency' in a Pennsylvania Agreement of Sale and what options does it give the buyer?
- A Pennsylvania buyer who removes an inspection contingency without completing an inspection is:
- A 'novation' in Pennsylvania real estate means:
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →