Final answer:
In a net listing, a real estate broker may play the dual roles of both the principal and agent. However, this type of listing can present a conflict of interest and is not legal in all states.
Step-by-step explanation:
In real estate, a broker may be both a principal and an agent in a transaction when they take part in a net listing. A net listing allows the broker to sell a property for a set price, anything above which they can keep as their commission.
This arrangement creates a situation where the broker has their own interest in the sale price and is also responsible for representing the seller, blending the roles of principal and agent.
However, it's important to note that net listings are not legal in all states due to the potential conflict of interest that can arise when a broker is incentivized to sell the property for the highest price possible. To maintain professional and ethical standards, brokers are typically required to prioritize their client's interests above their own.