Agency

In West Virginia, a 'net listing' is controversial primarily because:

AIt is prohibited by federal law
BThe broker's compensation creates an incentive to negotiate the lowest possible price for the seller, violating the duty of loyalty✓ Correct
CIt requires the seller to pay a minimum of 10% commission
DIt creates an automatic dual agency

Explanation

In a net listing, the broker keeps everything above the seller's net price as commission. This creates a conflict of interest: the broker benefits financially from securing a higher price, potentially at the seller's expense. It's considered inherently unethical.

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