A property owner agrees to pay a broker an open-ended commission as the difference between the sale price and a net amount, provided the owner receives a minimum amount of proceeds from the sale at closing. This is an example of a (n)

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Business

Tabby

14 February, 12:51

A property owner agrees to pay a broker an open-ended commission as the difference between the sale price and a net amount, provided the owner receives a minimum amount of proceeds from the sale at closing. This is an example of a (n)

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Scarlett Cantu · Answer 1

net listing

Explanation:

Net listing is a real estate practice where the seller sets a net price that he/she wants to receive for selling a property. The real estate agent is free to offer that property at any amount higher than the net listing, and if the property is sold, the real estate agent is entitled to the difference between the sales price and the net price set by the seller.

The agent's commission is solely based on the difference between the sales price and the price set by the seller, he/she cannot collect any other % commission.