Which statement is true regarding 'net' listings in the State of Indiana?

In Indiana, 'net' listings refer to a type of listing agreement where the seller specifies the net amount they wish to receive from the sale of their property, and any amount above that is considered the broker's commission. For such agreements to be compliant with state regulations, it is crucial that the commission structure is clearly communicated.

The correct choice emphasizes that net listings must show a maximum amount of commission. This requirement is in place to ensure transparency and to protect both the seller and broker from potential exploitation. By stipulating a maximum commission amount, it sets clear expectations and boundaries regarding what the broker can earn, thereby helping to avoid disputes or misunderstandings after the sale.

In contrast, a minimum commission amount is not typically a requirement for net listings. Verbal agreements for net listings are generally discouraged and may not hold up in legal contexts due to their lack of formal documentation. Lastly, while net listings can raise ethical concerns, they are not outright prohibited by state law; however, they must adhere to specific regulatory guidelines, including the requirement to disclose the commission structure. This context underlines the importance of having a clearly defined commission to maintain both compliance and fairness in real estate transactions.