Contracts
In Virginia, net listings — where the broker keeps everything above a set price — are:
AEncouraged as best practice
Bdiscouraged under VREB regulations✓ Correct
CLegal only with written consent
DOnly allowed for commercial property
Explanation
Net listings are discouraged in Virginia because they create a conflict of interest between the broker's financial gain and the fiduciary duty to the seller client.
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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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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