What type of listing is illegal in Alabama?

Prepare for the Alabama Post-License Salesperson Exam. Utilize flashcards and multiple choice questions with hints and explanations. Ensure your success on the exam day.

A net listing is illegal in Alabama because it can create ethical issues and conflicts of interest between the real estate agent and the seller. In a net listing, the agent's commission is based on the difference between the sale price and a predetermined net amount that the seller wishes to receive. This arrangement can incentivize agents to sell a property for significantly more than what the seller wants in order to increase their own commission, which could lead to a lack of transparency and fairness in the transaction. State regulations aim to protect consumers and promote ethical practices in real estate transactions, making net listings not permissible under Alabama law.

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