A listing agreement in which the real estate broker's commission is based on the amount by which the selling price of the property exceeds a specified (net) price set by the seller. This type of listing arrangement can be considered unethical or illegal in some states due to the potential for conflicts of interest.
A split commission refers to the dividing of commission payments between two or more parties, typically seen in securities, real estate, and other brokerage transactions.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.