What is the legal status of listings based on a net price in South Dakota?

Listings based on a net price have specific legal considerations in South Dakota. The legal framework in the state prohibits the use of net listings because they can potentially create conflicts of interest between agents and clients. A net listing sets a predetermined amount that the seller will receive from the sale of the property, with any additional amount going to the agent as commission. This arrangement can incentivize agents to sell the property at a higher price but may misalign with the seller's best interests.

The prohibition is rooted in the desire to maintain transparency and fairness in real estate transactions, ensuring that agents act in the best interests of their clients without the potential for a conflict created by a net commission structure. Therefore, the legal stance is that net listings are not allowed at any time within the state. This helps to protect both consumers and the integrity of the real estate profession in South Dakota.