Direct answer
What does Net listing mean?
A listing arrangement that sets an amount the owner will receive and lets the broker keep any excess as compensation.
Exam cue: New York regulations prohibit a broker from making a net listing agreement.
What does it look like in a question?
New York example
A seller asks for $500,000 and offers the broker every dollar obtained above that figure.
Common exam trap
What should you not confuse it with?
Do not confuse a prohibited net listing with a listing that clearly states a negotiated commission.
Related license law terms
Article 12-AThe part of New York Real Property Law that regulates real estate brokers and salespersons.Article 78 proceedingA court proceeding used to seek review of certain actions or determinations by a New York state or local body.Blind advertisementA real estate advertisement that fails to identify the broker or brokerage as required by New York advertising rules.ComminglingMixing client funds or property with a broker's own funds or property.ConversionWrongful exercise of control over another person's money or property that seriously interferes with that person's rights.EscrowMoney, documents or property held under stated conditions until a transaction event occurs.
Sources used3 references with section locators
The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.
- Real Estate Salesperson 77-Hour CurriculumNew York State Department of StateSupports: Exam scopeSection: Subject 1, License Law and Regulations
- Real Estate License Law, March 2026New York State Department of StateSupports: New York ruleSection: Real Property Law Article 12-A and 19 NYCRR Part 175
- Real Estate License Law, March 2026New York State Department of StateSupports: DefinitionSection: Department of State reference glossary entry for Net listing
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