Tennessee Real Estate License Exam Practice Question
Net listings are illegal in many states. This is because of the opportunity they create for a dishonest:
Correct Answer: D
Rationale: Net listings can lead to conflicts of interest, as they allow brokers to profit significantly from the sale price above a predetermined net amount for the seller. This arrangement can incentivize brokers to prioritize their financial gain over the seller’s best interests, potentially leading to unethical practices.
Option A is incorrect because buyers typically do not have the same level of control over the sale process. Option B misplaces the focus on the seller's potential to exploit buyers, which is less common in this context. Option C inaccurately suggests that sellers exploit brokers, which is not the primary concern with net listings.
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