A broker agreed to a listing under which the owner receives $210,000 from the sale, while the broker keeps any excess as commission. This is an example of?

This scenario illustrates a net listing, where the seller agrees to receive a predetermined amount from the sale of the property, and any amount received above that predetermined figure is kept by the broker as commission. In this case, the owner is set to receive $210,000, and if the property sells for more than that, the broker will receive the difference as their commission.

Net listings are less common due to their potential for conflict of interest; brokers may be motivated to sell the property for a price significantly higher than the net amount to maximize their commission, which can lead to ethical concerns within real estate transactions. In many markets, net listings can even be prohibited or heavily regulated.

Other listing types mentioned do not fit this scenario: an exclusive-agency listing allows the owner to sell the property themselves and does not involve retaining excess proceeds as commission; an exclusive-right-to-sell listing ensures that the broker receives a commission regardless of who sells the property; and an option listing relates to granting the broker the right to purchase the property within a certain timeframe rather than focusing on commissions from sale proceeds. Therefore, the characterization of this listing as a net listing is entirely accurate based on the arrangement described.