Agency
Under Virginia law, a listing agent who receives a net listing agreement (where the broker keeps all proceeds above the seller's net) must be aware that:
ANet listings are legal but strongly discouraged in Virginia✓ Correct
BNet listings create a conflict of interest and may violate VREB regulations; they are strongly discouraged
CNet listings are preferred by VREB as they incentivize higher sales prices
DNet listings require a minimum commission of 3%
Explanation
Net listings are legal but strongly discouraged in Virginia. They create a conflict of interest because the broker profits more by getting a higher price or keeping more of the proceeds above the seller's net, which may not align with the seller's best interests.
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Key Terms to Know
Listing Agreement
A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Fiduciary DutyThe 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.
Math Concepts
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