Net Listing

Listing in which the broker's commission is the excess of the sale price over an agreed-upon (net) price to the seller; illegal in some states because it may place the broker in an unethical situation.

A listing in which the broker's Commission is the excess of the sale price over an agreed-upon (net) price to the seller; illegal in some states.
Example: Abel agrees to sell Baker's house on a net listing. They set the net price at $200,000. Abel finds a buyer willing to pay $210,000. Abel's commission is $10,000. Note that should Abel find a buyer offering $200,000, Abel would earn no commission.