In real estate brokerage, a net listing is a type of listing agreement in which the seller specifies a net amount to be received from the sale of the property. Any proceeds above that agreed upon net amount are retained by the real estate broker as compensation.
Net listings are controversial because they can create a conflict of interest between the broker and the seller. For this reason, they are illegal or heavily restricted in some states, and where permitted, they are subject to strict disclosure and ethical requirements.
