Arizona Real Estate License Practice Exam

The term that describes a listing where the property owner receives a specified amount and the broker keeps any amount exceeding that is known as a net listing. In this arrangement, the seller sets a minimum price they wish to receive from the sale of the property. If the broker sells the property for a higher price, they retain the difference as their commission. This type of listing can incentivize brokers to maximize the sale price, as their earnings can significantly increase with the property's sale price above the specified minimum.

It's important to note that net listings are often discouraged or even illegal in some jurisdictions due to the potential for conflicts of interest and to ensure that brokers provide fair market value advice to sellers. In contrast, exclusive agency listings, exclusive right to sell listings, and open listings are different types of agreements that outline how commissions are handled but do not operate under the net arrangement where a specified amount for the owner is guaranteed, allowing the broker to retain any excess.