Rhode Island License Law

Rhode Island prohibits 'net listings' primarily because they:

AReduce competition among brokers
BCreate a conflict of interest where the broker benefits from obtaining the highest possible price regardless of the seller's goals✓ Correct
CRequire more paperwork than standard listings
DAre only legal in commercial transactions

Explanation

Net listings create a conflict of interest — the broker is incentivized to obtain the highest price (to maximize their commission) but may also benefit from keeping the seller's minimum net price low. Rhode Island prohibits or strongly discourages them because of this inherent conflict.

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