Definition: A listing arrangement in which the owner specifies a net amount to receive and the broker's compensation is the amount obtained above the agreed net, subject to the contract.
Example
An owner specifies a $300,000 net and the agreement defines how sale proceeds above that amount determine compensation.
Keep the distinction clear
Net listings create a strong conflict-of-interest risk. They do not permit concealment of the true price or undisclosed compensation; applicable duties and disclosures still apply.
Related terms
Listing Agreement · Compensation · Overage (Undisclosed Compensation)
Keep studying
References: FREC Course I syllabus, Section 11
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