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Why are net listings generally disfavored in most states?

Many states disfavor net listings because they tend to create a conflict of interest between the seller and the agent. The seller may unknowingly underestimate the value of the property, resulting in an unfair windfall for the agent.

Who are net listings unfair to?

In California, net listings are legal however the following policy needs to be adhered to: [Net listings] can easily lead to a bdocHub of the agents fiduciary obligations and should be used only with highly sophisticated clients, or clients who are independently represented and, of course, with full disclosure of all

Why are net listings unfair?

Net listing is illegal in many states because it represents a conflict of interest between the agent and the seller. The net listing agreement gives the agent an incentive to sell the property for as low as possible, rather than getting the best possible price for the seller.

How do you write a listing agreement?

The elements that make up a listing agreement. Names, addresses, and contact information for both the owner and the agent. The time period in which the property will be listed for sale. The listing price of the property. The type of listing agreement being entered into.

In what states is net listing illegal?

Are net listings legal? As the above example illustrates, net listings are ripe for abuse. Because real estate agents have a fiduciary duty to serve their clients interest, net listings are widely considered unethical and illegal in all but three states: California, Texas, and Florida.

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