Tennessee Real Estate Exam Practice Question
Net listings are banned in many states because they let the
Correct Answer: D
Rationale: Net listings create a scenario where brokers are incentivized to prioritize their own financial gain over the seller's best interests. By allowing brokers to keep any amount above a predetermined sale price, they may push for higher sales prices, potentially leading to unethical practices.
Option A is incorrect; buyers typically do not exploit sellers in this arrangement. Option B misrepresents the dynamics, as sellers are not in a position to exploit buyers. Option C is also wrong; while brokers may have advantages, the structure of net listings primarily poses risks to sellers, not to brokers.
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