Although net listings are not illegal in California, they can easily lead to a breach of the agent’s fiduciary obligations and should be used only with highly sophisticated clients, or clients who are independently represented and, of course, with full disclosure of all of the conflicts involved.
What is a net listing in real estate?
A net listing allows the agent to keep any amount of money over the price set by the seller at the conclusion of the sale. In other words, if the house sells for more than the seller’s asking price, the agent can keep or ‘net’ the difference.
What is a listing based on net price?
Net listing means a listing agreement based on the net price the seller will receive if the property is sold. Under a net listing a broker can offer the property for sale at the highest price obtainable to increase the commission.
Is net listing illegal in Louisiana?
RS 37:1448.3 – Net listing agreements. It is unlawful for any real estate broker to advise or encourage a seller in relation to, or to enter into, a net listing agreement as described in R.S. 37:1431(34), for the sale of residential real estate property or any land as defined in R.S. 47:2302.
How is net commission calculated?
Just take sale price, multiply it by the commission percentage, divide it by 100. An example calculation: a blue widget is sold for $70 . So the formula is: commission_amount = sale price * commission_percentage / 100 .
Which complaints must the Louisiana Real Estate Commission investigate?
The Louisiana Real Estate Commission has been given the authority to investigate any issue they feel needs checking, but MUST investigate ALL written, verified complaints.
How many real estate commissioners does Louisiana have?
eleven members
The Real Estate Commission consists of eleven members appointed by the Governor for one six-year term each. Each appointment by the governor is submitted to the Senate for confirmation: One member is appointed from each of the seven Supreme Court districts.
