- (a) Trade associations or other organizations which provide a computerized listing service for their members, but which do not receive compensation when the real estate is sold would not be required to be licensed under Texas Occupations Code, Chapter 1101 (the Act).
- (b) A "net listing" is a listing agreement in which the broker's commission is the difference ("net") between the sales proceeds and an amount desired by the owner of the real property. A broker may not take net listings unless the principal requires a net listing and the principal appears to be familiar with current market values of real property. When a broker accepts a listing, the broker enters into a fiduciary relationship with the principal, whereby the broker is obligated to make diligent efforts to obtain the best price possible for the principal. The use of a net listing places an upper limit on the principal's expectancy and places the broker's interest above the principal's interest with reference to obtaining the best possible price. If a net listing is used, a broker should modify the listing agreement so as to assure the principal of not less than the principal's desired price and to limit the broker to a specified maximum commission.
- (c) A real estate licensee is obligated to advise a property owner as to the licensee's opinion of the market value of a property when negotiating a listing or offering to purchase the property for the licensee's own account as a result of contact made while acting as a real estate agent.
Source Note:The provisions of this §535.16 adopted to be effective January 1, 1976; amended to be effective April 14, 1998, 23 TexReg 3682; amended to be effective July 1, 1999, 24 TexReg 4824; amended to be effective January 1, 2004, 28 TexReg 9541.