Maine Real Estate License Practice Exam

What is a net listing?

1. A type of listing in which the seller receives all proceeds above a minimum price

2. A type of listing that allows the licensee to recapture the cost of advertising

3. A type of listing that ensures the buyer will receive the price they want for the property

4. A type of listing in which the real estate brokerage agency receives a fixed commission

The correct answer is: A type of listing in which the seller receives all proceeds above a minimum price

A net listing is characterized by the agreement that the seller will receive all proceeds from the sale of the property that exceed a specified minimum price, which is essentially the seller's desired net amount. In this arrangement, if the property is sold for a price higher than that minimum threshold, the excess amount goes to the real estate licensee as part of their commission. This type of listing can incentivize agents to sell the property for a higher price, since they benefit directly from any amount that exceeds the seller’s set price. In addition, understanding the context of other types of listings can clarify why this definition fits specifically for a net listing. For example, the other types mentioned might involve different arrangements regarding commissions and costs associated with marketing and selling the property, which do not align with the seller-centric focus of a net listing. The unique aspect of a net listing is its emphasis on maximizing the seller's financial outcome beyond a predetermined minimum, distinguishing it from more conventional commission-based arrangements.