A price, which must be expressly agreed upon, below which the owner will not sell the property and at which the broker will not receive a commission; the broker receives the excess over and above the net listing price as commission. The broker in this type of listing will have a very hard time maintaining his fiduciary responsibilities to his seller since his interests are potentially at odds with the interests of the seller.
A net listing is used when the seller of real property wishes to net a certain dollar amount when selling real property. To create a strong motivation on the listor's part, the seller agrees that the listor will receive the difference between the agreed upon price and what the listor actually sells the property for. Although legal in Texas, net listings are not encouraged. One school of thought prevails stating simply that instances will arise where the seller may not know the market value of the property. Legally, the listor has the fiduciary responsibility to put the interest of the seller above his own, and, as a result, net listings have the potential of creating a breach of the fiduciary responsibilities to a seller.