If an agent informs an owner that they might sell their property for $250,000 and anything over that can be their commission, this is termed what?

The situation described involves an agent informing a property owner that they might sell their property for a specific amount, with the understanding that any amount over that figure would be the agent's commission. This structure is known as a net listing.

Net listings are problematic because they can create conflicts of interest between the agent and the seller. The agent benefits financially from selling the property at a higher price, which might lead to pressure on the agent to prioritize their commission over the seller's best interests. In many states, including Utah, net listings are discouraged and can even be prohibited under real estate regulations because they can lead to ethical dilemmas and potential abuse.

Thus, the characterization of this arrangement as a net listing is crucial, as it indicates that the agent could face disciplinary action for engaging in this type of commission structure, which does not align with standard practices of transparency and fiduciary duty in real estate transactions.