Agency
In Texas, a 'net listing' is:
AA listing where the broker earns the amount over the seller's net price
BA prohibited listing arrangement under TREC rules because of the potential for conflicts of interest✓ Correct
CA common practice for luxury properties
DA type of listing used only for commercial properties
Explanation
A net listing allows the broker to keep everything above the seller's desired net price as their commission. Texas Occupations Code and TREC rules discourage or prohibit net listings because they create inherent conflicts of interest—the broker is incentivized to achieve the highest price to maximize their commission, but this creates potential for abuse and is not in the seller's best interest.
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