Final answer:
Net listing is permissible if the seller insists on using this structure. However, net listings may be considered unethical and are not allowed in all states. Sellers and agents should understand the legal and ethical implications before entering into a net listing agreement.
Step-by-step explanation:
Net listing is a type of real estate listing agreement where the seller specifies the minimum amount they want to receive from the sale, while the agent is entitled to any amount received over that minimum. In this case, if Seller Andrea insisted on using a net listing structure, it is permissible for Agent Samara to sell the home as a net listing.
However, it's important to note that net listings are not allowed in all states and may be considered unethical in some cases. The reason for this is that net listings can create a conflict of interest for the agent, as their incentive is to sell the home for as much as possible to maximize their commission, rather than acting in the best interest of the seller.
Some states have regulations in place regarding net listings to protect sellers from potential abuse. For example, some states require the agent to provide the seller with a written estimate of the fair market value of the property before entering into a net listing agreement. It is essential for both the seller and the agent to understand the legal and ethical implications of a net listing structure before proceeding.