Agency
In Rhode Island, 'net listing' agreements are:
ACommon and recommended for residential sales
BConsidered unethical and potentially legal but strongly discouraged because they create a conflict between the broker's interest and the seller's interest✓ Correct
CRequired for commercial transactions
DUsed only for vacant land sales
Explanation
A net listing sets a minimum price the seller will accept and allows the broker to keep anything above that as their commission. Rhode Island and NAR consider net listings unethical because they create an inherent conflict of interest—the agent benefits from the seller getting less.
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