Wyoming License Law
Under Wyoming license law, 'net listing' arrangements are:
ARequired for all commercial transactions
BGenerally discouraged and potentially unethical because they create a conflict of interest✓ Correct
CEncouraged by the WREC as they benefit sellers
DThe standard listing type used in Wyoming
Explanation
A net listing pays the broker any amount above a specified net price to the seller. This creates a significant conflict of interest because the broker benefits from a higher commission by obtaining the lowest possible price for the seller.
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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.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
State-Specific Concepts
License Law
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