Agency
Vermont's net listing arrangement, where the broker receives all proceeds above a set price, is:
AThe preferred listing type in Vermont
BGenerally considered unethical and potentially legal but strongly discouraged due to conflict of interest✓ Correct
CRequired for luxury properties
DOnly allowed for commercial properties
Explanation
Net listings create an inherent conflict of interest between the broker and seller. Vermont considers them highly problematic because the broker benefits directly from achieving a price above the seller's minimum, potentially compromising the agent's fiduciary duty.
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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.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
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.
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