Reviewed by Casa Academy and updated July 29, 2026 using the current DBPR checklist and Pearson VUE scheduling guidance.
Net Listing
A net listing is a brokerage agreement where the seller sets a minimum net amount to receive from the sale and the broker keeps any proceeds above that figure as commission, creating a strong incentive for the broker to maximize price but also a conflict of interest that makes net listings illegal or heavily restricted in many states.
Exam context
Net listing pays broker everything above seller net. Often illegal for residential. Exclusive listing uses stated commission on gross price. Open listing pays only selling broker.
Commission structure and risk
If a seller wants $500,000 net and the property sells for $550,000, the broker retains $50,000 before closing costs unless the contract states otherwise. Brokers may be tempted to discourage lower offers that still exceed the net floor or to conceal true market value from the seller. Courts and regulators treat net listings as inherently prone to fraud.
License law and alternatives
Many state real estate commissions ban or discourage net listings for residential property. Standard exclusive right-to-sell listings disclose commission as a percentage or flat fee of gross sales price. Agents should use transparent compensation and advise sellers on net proceeds worksheets after commission, payoff, and transfer taxes.
Examples
Prohibited residential net listing
A broker accepts a net listing promising the owner $400,000 on a home that sells for $460,000, keeping $60,000 without a disclosed percentage. The state commission may suspend the license for using a banned listing form.
Transparent alternative
The seller lists at $425,000 with a 5% commission disclosed in writing, netting approximately $403,750 before mortgage payoff and closing costs shown on a seller net sheet.
Keep studying
Related terms
- Exclusive listingStandard right-to-sell listing with disclosed gross commission.
- Open listingNon-exclusive listing paying only the procuring broker.
Related resources
- Free exam prep
Practice related licensing questions with instant feedback.
- Real estate glossary hub
Browse all published national glossary entries.
- Florida exam topic hub
Florida-specific explainers and question sets for this topic area.
Sources
- NAR: net listings policy summary(National Association of Realtors)