Perception (rightfully so) of a conflict of interest between the seller and the seller's agent.

Sadly, some agents would use the opportunity to profit at the seller's expense. It is a conflict with the agent's fiduciary responsibilities to their sellers.

because it's taking advantage of the seller and "stealing" equity....I call it theft!!!!

It could put the interest of the agent above that of the client.

The state does not trust agents to be honest or our clients to be competent.

The increased possibility that the broker will act in their best interest, not their client's.

The profit should all be the property owner's aside from the agreed-upon brokerage fees.

You won't find net listings around much, even where they are legal.

The opportunity for a listing agent to take advntage if a seller. Check your state statutes. Many do not make it illegal while discouraging the practice.

conflict of interest is the short answer.  

 Net Listings are a type of listing where the home seller sets a minimum price he/she is willing to sell the property for and whatever amount above that minimum the real estate agent manages to get from a home buyer's offer, becomes the real estate agent's commission.

Some agents may take advantage on home sellers by pricing the property below market.

It had to be regulated because it has a loop hole dynamic where a naive seller could be taken advantaged of by a savvy licensed crook type. Big money brings out big troubles...

It can work against the interests of the seller.

looks like you already have your answer

Conflict of interest and could mean trouble ahead.  

There is the ability for a dishonest agent to take advantage of an unknowing seller with a net listing. Making them illegal is an attempt to remove that temptation.

Seth Rooker you have been around here long enough to know this question has been ask over and over again. You can do better. If you are going to "skate by" on your studies are you also going to try to skate by once licensed? It ain't going to work sir.

Click on the link below to view the same question and all the answers:

1. https://activerain.com/questions/show/49259/--why-are-net-listings-illegal-in-some-states-

I'm going out on a limb here and I'm going to guess it has to do with the state laws.  

I wish you all the best with your real estate studies.

Seems my 2 cents are not needed here.

I would pay attention to your own state.

Your answers have covered all the reasons

Some people abused them.

This is not the best way to deal with sellers, and you have your answers here. A

You have many great responses.

They can lead to abuse or fraud.

Never had one.

Lots of good answers here.  You have been well informed.

Because net listing make it too easy for agents to cheat their sellers and our reputation is already bad enough.

They scream for unscrupulous agents to slither out from under their rocks & deceive sellers!

Not wise for a seller to go in the net listing direction.

It's not in the seller's best interests but the agent's