In a net listing, what does the agent receive?

Prepare for the Kentucky Reciprocity Test. Hone your skills with multiple choice questions and detailed explanations. Master the content and ace your exam!

In a net listing, the agent receives the rest of the profit after the seller's predetermined net amount is paid. This arrangement involves the seller setting a specific price they wish to receive from the sale, and any amount over that price is considered the agent's commission. Therefore, if the property sells for more than the agreed-upon net amount, the agent is entitled to keep the excess as their commission, effectively incentivizing them to sell the property for the highest possible price. This structure, however, can lead to potential conflicts of interest and is not commonly used in many markets, as it can place pressure on the agent to prioritize their profit over the seller's best interests. Other options, such as receiving a full commission or a percentage of the sale, do not accurately describe the unique nature of a net listing.

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