A net listing is created when an owner states a minimum acceptable amount and a broker agrees to market the property at a higher price. Any excess over the owner's required amount pays the broker's commission. However, if the broker brings in an offer much higher than the owner's minimum, the broker may not be entitled to receive more than a customary commission to prevent "unjust enrichment." The broker actually may work for nothing if the owner accepts an offer at or below the minimum. While legal in Florida, net listings create many problems and are illegal in some states. Licensees should avoid using them.
Re-Bloggged 2 times:
- Topic: Real Estate Best Practices
- net listings