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Which listing is a violation of NH license law?

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Question & Answer

Review the question and all answer choices

A

Net Listing

Correct Answer
B

Multiple Listing

Multiple Listing is a cooperative arrangement where participating brokers agree to share commission information. It's a legal and widely accepted practice that benefits sellers by exposing their property to a broader market of potential buyers.

C

Exclusive Agency

Exclusive Agency listing allows the seller to find their own buyer without paying a commission. This is a legal listing type that protects the seller's right to sell their property independently while still benefiting from broker marketing efforts.

D

Exclusive Right to Sell

Exclusive Right to Sell is the most common listing type where the broker earns a commission regardless of who finds the buyer. This is a fully legal and enforceable agreement in New Hampshire and most other states.

Why is this correct?

CORRECT_ANSWER: Net listings are prohibited in New Hampshire license law because they create a conflict of interest. In a net listing, the agent keeps any amount received above the seller's minimum price, incentivizing the agent to accept lower offers than might otherwise be negotiated.

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