What does a net listing involve?

A net listing involves a situation where the seller specifies an amount they wish to receive from the sale of their property. Any proceeds above this specified amount are retained by the broker as their commission. This structure aligns with the choice that states the seller receives only the amount they require from the sale, while the broker earns anything beyond that as a financial incentive to maximize the sale price.

In a net listing, the broker's role is to negotiate the sale price as high as possible, making it beneficial for both parties — the seller meets their financial goal, and the broker has the potential for increased earnings if the property sells for a higher price. This kind of listing is less common and may be viewed as controversial in some areas of real estate practice because it can create conflicts of interest regarding the broker’s motivation in the transaction.

Other options do not accurately capture the essence of a net listing. For example, a scenario where the broker keeps all proceeds from the sale doesn’t reflect the seller’s financial security in net listings. Similarly, the notion that the agent has special authority to act on behalf of the client doesn't specifically relate to net listings, as all listings generally require some form of authority. Lastly, a listing without any requirements on the sale ignores the fundamental