Is the net listing concept generally accepted in Florida real estate practice?

• A. True
• B. False
• C. Only for commercial properties
• D. Only when approved by state authorities

Answer: (A)

A net listing is a type of listing where the seller sets a specific net amount they want to receive from the sale, and the broker’s commission comes from the difference between the sale price and that net amount. This arrangement is generally accepted in Florida real estate practice because it’s a recognized form of listing that can be used when a seller wants to guarantee a certain net and is willing to let the broker earn the surplus as compensation. The important part is that the terms must be clearly stated in writing and disclosures provided so all parties understand how the compensation is calculated. While this setup can raise ethical concerns due to potential conflicts of interest, Florida practice historically permits it when handled transparently and within the licensing requirements. It applies to both residential and commercial scenarios, and it doesn’t require separate state approval to exist.