What must a valid net listing in Indiana contain?

A valid net listing in Indiana must specify the maximum commission amount that the real estate broker can earn. This requirement ensures transparency and protects the interests of the seller by clearly outlining the limits on how much commission can be deducted from the sale proceeds. In a net listing arrangement, the broker's fee is typically calculated based on the difference between the sale price and the seller's predetermined net amount. Thus, defining a maximum commission not only adds clarity to the agreement but also helps prevent any misunderstandings regarding the final proceeds a seller will receive after the sale.

While some options may pertain to aspects of net listings, they do not meet the specific requirements mandated by Indiana law, which focuses on the maximum commission parameter to safeguard seller interests during the transaction.