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License lawSubject 1 of 19

Net listing

A net listing is a listing arrangement that sets an amount the owner will receive and lets the broker keep any excess as compensation.

Direct answer

What does net listing mean?

A net listing is a listing arrangement that sets an amount the owner will receive and lets the broker keep any excess as compensation.

Exam cue: Under 19 NYCRR 175.19, no New York real estate broker may make or enter into a net listing contract for the sale of real property.

What does it look like in a question?

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?

A listing that states a negotiated commission is lawful. The problem is a broker keeping whatever the sale brings above the seller's fixed net.

Article 12-AArticle 12-A is the part of New York Real Property Law that regulates real estate brokers and salespersons.Article 78 proceedingAn Article 78 proceeding is a court proceeding used to seek review of certain actions or determinations by a New York state or local body.Blind advertisementA blind advertisement is a real estate advertisement that fails to identify the broker or brokerage as required by New York advertising rules.ComminglingCommingling is mixing client funds or property with a broker's own funds or property.ConversionConversion is the wrongful exercise of control over another person's money or property that seriously interferes with that person's rights.EscrowEscrow is an arrangement in which money, documents or property are held by a neutral party under stated conditions until a transaction event occurs.

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