Agency
In South Carolina, a 'net listing' creates a potential conflict of interest because:
AThe seller may get more than expected
BThe agent's profit is maximized when the sale price exceeds the seller's net by the largest amount✓ Correct
CThe buyer and seller split the agent's commission
DThe agent is required to disclose the net to all parties
Explanation
In a net listing, the broker keeps everything above the seller's net price. This incentivizes the broker to drive the price as high as possible, potentially at the expense of full disclosure and loyalty to the seller.
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Math Concepts
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