Question

Marissa has agreed to represent Shelby in the sale of his home. If Marissa finds the buyer for Shelby's home, currently listed at $225,000, she gets to keep any amount above $220,000. If another licensee finds the buyer, or if Shelby finds a buyer, Marissa earns nothing.

What types of agreements are in place?
a) Exclusive Agency Listing Agreement
b) Exclusive Right to Sell Agreement
c) Open Listing Agreement
d) Net Listing Agreement

Answer 1

The agreement between Marissa and Shelby, where Marissa keeps any sale amount over $220,000 from a home listed at $225,000 and earns nothing if she doesn't find the buyer, is a Net Listing Agreement.

Step-by-step explanation:

In the scenario provided, Marissa has agreed to represent Shelby in the sale of his home, with specific terms dictating her compensation based on finding a buyer. This type of agreement is known as a Net Listing Agreement. Under this agreement, Marissa is entitled to keep any amount she earns above a set price, which in this case is anything above $220,000 from the sale of the home listed at $225,000. If she does not find the buyer, she earns nothing, which highlights the unique financial motivation and the potential for a conflict of interest inherent in this type of listing. It's worth noting that net listings are not legal or advised in all states due to their potential for unethical practices.