What type of contract occurs when a seller specifies a net amount they wish to receive from a property sale?

A net listing contract is a specific type of agreement between a seller and a real estate agent where the seller establishes a minimum net amount they wish to receive from the sale of their property. The agent is then allowed to retain any amount over that specified net amount as their commission. This type of contract incentivizes the real estate professional to sell the property for a higher price, as their earnings are directly tied to the amount exceeded above the agreed net amount.

In contrast, exclusive listings and open listings do not focus on a net figure for the seller. An exclusive listing grants one agent exclusive rights to sell the property, while an open listing allows multiple agents to attempt to sell the property, making it more flexible for sellers but potentially less effective in terms of marketing. Flat fee listings, on the other hand, involve the seller paying a fixed commission fee rather than a commission that is contingent on the sale price, lacking the net amount guarantee characteristic of a net listing. This makes the net listing contract distinctive and appropriate for sellers who want to ensure they receive a specific amount from the sale.