Rhode Island License Law
Net listing agreements, in which the broker retains everything above a specified net amount to the seller as compensation, are:
AEncouraged by the DoBR as they benefit sellers
Bdiscouraged or strongly discouraged in Rhode Island due to the potential for conflicts of interest✓ Correct
CThe most common type of listing agreement in Rhode Island
DRequired to be submitted to the DoBR for approval
Explanation
Net listings create an inherent conflict of interest because the broker has a financial incentive to obtain the lowest possible price for the seller. They are discouraged or strongly discouraged under Rhode Island license law.
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