What type of listing allows a seller to receive a specific amount with the broker keeping the rest as commission?

Study for the Real Estate Contract Test. Improve your knowledge with interactive flashcards and multiple-choice questions, each equipped with hints and explanations. Prepare well for your exam!

In a net listing arrangement, the seller sets a specific amount they wish to receive from the sale of their property, and any amount over that figure serves as the broker’s commission. This type of listing can incentivize brokers to secure a higher selling price, as their commission is directly tied to the sale price above the seller's desired net amount.

This arrangement is different from an exclusive right-to-sell listing, where the broker earns a commission regardless of the sale price, and from an exclusive agency listing, where the seller retains the right to sell the property independently without owing a commission to the broker if they find a buyer themselves. An open listing allows multiple brokers to market the property, with only the broker who finds a buyer receiving a commission, which does not relate directly to a seller's specific net amount.

Thus, the net listing uniquely structures the transaction around the seller's net proceeds while still allowing the broker to earn a commission based on the sale price, making it the correct choice for this question.

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