Alabama Real Estate Practice Exam

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Prepare for your Alabama Real Estate Exam with a comprehensive quiz comprised of flashcards and multiple choice questions, complete with hints and explanations.

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How is the broker’s commission determined in a Net Listing?

Fixed percentage of the selling price
Difference between the selling price and the owner's desired price
Amount above a specified target selling price
Fixed amount regardless of selling price

The correct answer is: Difference between the selling price and the owner's desired price

A Net Listing is an agreement between a broker and a seller where the broker's commission is determined by the difference between the selling price and the owner's desired price. This option is different from the other choices because it takes into consideration the owner's desired price rather than a fixed percentage or amount. Option A and D do not involve the owner's desired price at all, while option C only considers a target selling price, but not the owner's desired price. Therefore, B is the most accurate explanation of how the broker's commission is determined in a Net Listing.