Master your Alabama real estate exam with our comprehensive practice test. Tailored feedback, expert tips, and up-to-date questions to ensure your success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.


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

  1. Fixed percentage of the selling price

  2. Difference between the selling price and the owner's desired price

  3. Amount above a specified target selling price

  4. 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.