Agency
What is a 'net listing' and why is it generally discouraged or prohibited in Pennsylvania?
AA listing agreement where the seller receives a fixed net amount and the broker keeps everything above that price as commission✓ Correct
BA listing where the broker's commission is calculated as a percentage of the gross sale price
CA type of exclusive agency listing used only for commercial properties
DA listing agreement where the seller pays no commission if they find their own buyer
Explanation
A net listing sets a minimum price for the seller; the broker keeps any sale proceeds above that amount as commission. Pennsylvania PREC discourages net listings because they create a conflict of interest — the broker profits more by selling at the highest price, possibly at the seller's expense through manipulation.
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