Under Ohio law, when a listing agreement includes a net listing provision, what is the broker's compensation based on?
Correct Answer
D) The difference between the minimum net price the seller wants and the actual sale price
In a net listing, the broker's compensation is the difference between the seller's desired net proceeds and the actual selling price. While legal in Ohio, net listings are discouraged because they create a conflict of interest.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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