Question

Which statement correctly applies to a real estate broker who represents both parties as a single agent in a transaction?

a. The broker may be paid by both parties if each knows of and agrees to the dual commission
b. The broker may be compensated by either party but never both
c. The broker is in violation of FS 475
d. The broker is limited to his or her customary commission

Answer 1

The broker may be paid by both parties if each knows of and agrees to the dual commission

Step-by-step explanation:

In some states and situations, a real estate broker can represent both parties as a single agent in a transaction, which is called dual agency. In such cases, the broker may receive compensation from both parties, as long as both parties are aware of the dual commission and agree to it. This arrangement should be disclosed and agreed upon in writing to avoid potential conflicts of interest and to maintain transparency in the transaction.

Answer 2

a. The broker may be paid by both parties if each knows of and agrees to the dual commission.