What are the rules for net listings in Mo?

Answer 1

ChatGPT said:

In Missouri, net listings are legal but come with significant ethical concerns and regulatory scrutiny. A net listing occurs when a seller sets a minimum acceptable price for their property, and the broker keeps any amount above that price as commission. While this arrangement may seem straightforward, it can easily lead to conflicts of interest and potential exploitation if not handled transparently. The Missouri Real Estate Commission (MREC) permits such listings but advises against them due to the risk they pose to fair dealing and fiduciary responsibility. Brokers are required to fully disclose all terms to the seller and act in their client’s best interest at all times. Given these complexities, most real estate professionals in Missouri avoid net listings and instead use more standard listing agreements that ensure fairness and clarity for both parties.

Answer 2

In Missouri, net listings are not explicitly prohibited, but they are subject to strict regulations. A net listing occurs when a real estate agent agrees to sell a property for a specified net amount to the seller, with any excess as the agent's commission. Agents must disclose their commission structure to clients and ensure transparency to comply with state laws. Additionally, it is advisable for both parties to have a clear written agreement to prevent potential disputes.