Legal Definitions - net sale contract

A net sale contract is a type of listing agreement in real estate where the agent agrees to sell the owner's property for a set minimum price, with any amount over the minimum being retained by the agent as commission.

For example, if a property owner sets a minimum price of $100,000 for their property, and the agent sells it for $120,000, the agent would keep the $20,000 difference as their commission.

This type of agreement can be risky for the property owner, as the agent may be motivated to sell the property for less than its true valuein order to secure a higher commission. As a result, net sale contracts are not commonly used in real estate transactions.