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.
Related West Virginia Agency Questions
- A West Virginia dual agent represents both the buyer and seller in the same transaction. The agent must NOT:
- A West Virginia real estate broker's duty to account includes:
- The West Virginia Residential Property Disclosure form must be delivered to prospective buyers:
- A West Virginia listing agent who represents the seller and cooperates with a buyer's agent from another brokerage is participating in:
- A West Virginia listing agent who wants to present their own buyer's offer on their own listing must disclose to the seller that they represent the buyer. This creates:
- In West Virginia, which type of listing agreement gives the broker the exclusive right to earn a commission regardless of who sells the property?
- Under West Virginia law, a real estate licensee's agency relationship with a client is primarily established by:
- An agent in West Virginia who accepts a gift from a vendor (e.g., a contractor who performs work on a client's property) without the client's knowledge may be:
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