(a) A broker is obligated under a listing contract to negotiate the best possible transaction for the principal, the broker has agreed to represent.
(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. 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, the listing agreement must assure the principal of not less than the principal's desired price and limit the broker to a specified maximum commission.
(c) A real estate license holder is obligated to provide a broker price opinion or comparative market analysis on a property when negotiating a listing or offering to purchase the property for the license holder'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; amended to be effective January 1, 2011, 35 TexReg 11674; amended to be effective March 21, 2012, 37 TexReg 1905; amended to be effective January 1, 2015, 39 TexReg 9669