Spam prevention
Rainmaker
4,112,821
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Because (a) it is and (b) it's an easy path for an agent to take advantage of the seller. And that's why (a) comes into play.

Mar 21, 2019 04:42 AM
Rainmaker
220,738
Kris Collis, Associate Broker
Smart Way America Realty - East Stroudsburg, PA
Professional Results you Expect 570-801-5525

"A net listing is an agreement between the seller of a home and the broker entrusted by the seller to find a buyer. In most listing agreements, the broker is entitled to a percentage of the selling price as his commission. Conversely, in a net listing agreement, the broker takes as his commission the difference between the sale price and the net price agreed upon by the seller, as long as the sale price is higher. Since this practice can put the broker in a position to exploit the seller, it is considered illegal in many locations."  What is a net listing?

Mar 20, 2019 07:56 PM
Rainmaker
4,039,221
Richard Weeks
Dallas, TX
REALTOR®, Broker

They do not put the interest of the client first.

Mar 20, 2019 07:50 PM
Rainmaker
2,641,192
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Laws on the books means events happened that led up to them being passed

Mar 20, 2019 07:21 PM
Ambassador
5,405,687
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

They are perceived as exploitable.

Mar 21, 2019 05:20 AM
Rainmaker
960,461
Diana Zaccaro Broker Associate
Tropical Beachside brokered by eXp - Cocoa Beach, FL
"The Accidental Blogger" Cocoa Beach, Florida

To protect the public from unscrupulous brokers.

Mar 20, 2019 08:44 PM
Ambassador
4,255,180
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Kris Collis gave you a great explanation. Good luck with your studies!

Mar 20, 2019 08:32 PM
Rainmaker
1,898,009
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Because unscrupulous agents could take advantage of their clients with them.

Mar 20, 2019 07:10 PM
Rainmaker
1,639,426
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

As the Birthday Girl, Nina Hollander wrote

Mar 21, 2019 06:10 PM
Ambassador
3,054,602
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

 

I wish you all the best with your real estate studies. 

Mar 21, 2019 05:55 PM
Rainmaker
1,153,400
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Net listings are legal in California only if the commission amount is disclosed to the seller before she becomes committed to the sale.A type of listing in which the commission is any amount received from the sale over and above the "net" required by the seller.

Mar 21, 2019 11:40 AM
Rainmaker
6,603,273
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Consumer protection.

Mar 21, 2019 08:34 AM
Rainmaker
1,386,718
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Because too many schysters used them to screw people over.

Mar 21, 2019 07:41 AM
Rainmaker
468,799
Dan Pittsenbarger
Keller Williams Western Realty - Bellingham, WA
Improving Conditions

Makes it too easy to exploit uninformed sellers for those few self serving bad eggs every industry has.

Mar 21, 2019 06:21 AM
Rainmaker
3,330,425
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

They are illegal here in NH as well. The sole reason is the most money should go to teh seller, not to an agent who can pad their commission by selling over what the seller wants

Mar 21, 2019 05:35 AM
Rainmaker
888,357
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Consumers, in this information age, are considered at a disadvantage in knowing the value of their real estate. These same consumers who own commercial grade real estate are deemed smarter.

As such, 'net listing' option is taken away as an option in most states, becuase an agent may take advantage of the consumer.

"Net listings" however, require of the agent to actually do some work, research the property, determine best use, market it effectively and negotiate the best possible price. Instead, agents are order takers and market exclusively through the MLS. But the consumer is perceived to be represented and safe.

 

Mar 21, 2019 05:20 AM
Rainmaker
4,205,968
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Kris Collis has you covered on this one!

Mar 21, 2019 03:59 AM
Rainmaker
1,735,162
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Temptation to get greedy. 

Mar 22, 2019 03:35 AM
Rainmaker
5,582,435
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Kris Collis gave you the answer.

Mar 21, 2019 06:41 AM
Rainmaker
1,596,586
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

No idea...

Jun 27, 2019 06:37 PM
Rainmaker
4,936,471
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Never had one.

Apr 02, 2019 03:41 PM
Rainmaker
4,010,170
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Good question, do not know.

 

Mar 25, 2019 08:40 PM
Rainmaker
910,246
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

A Net Listing can benefit the broker unfairly or at least appear to do so. It would not be in alignment with the fiduciary duty owed to the client.

Mar 22, 2019 11:24 AM