Broker Tom represents both buyer and seller as a transaction broker in the same deal. His standard commission is 6% when representing one party. What should Tom disclose about his compensation as a transaction broker?
Correct Answer
B) He must disclose his total compensation and from which party it comes
Transaction brokers must disclose their total compensation and identify which party is paying the commission to avoid conflicts of interest. Option A is incorrect because double charging without disclosure would be fraudulent. Option C is incorrect because there's no legal limit on transaction broker compensation. Option D is incorrect because transaction brokers can receive commissions with proper disclosure.
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Why the Other Options Are Wrong
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More Brokerage Activities Procedures Questions
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- → Sales associate David wants to create business cards for networking events. What must appear on his business cards to comply with Florida law?
- → Real estate broker Sarah discovers that her sales associate Mark has been placing earnest money deposits into his personal checking account instead of the broker's escrow account. Mark claims he always transfers the funds within 24 hours. What should Sarah do according to Florida law?
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- → A Florida broker must register sales associates with DBPR within:
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