Agency
A Pennsylvania licensee who receives compensation from more than one party to a transaction must:
AAccept it only from the seller
BDisclose the multiple compensation arrangement to all parties in advance and obtain consent✓ Correct
CRefuse compensation from any party other than their employing broker
DReport dual compensation to PREC within 10 days
Explanation
Receiving compensation from multiple parties in a transaction is permissible in Pennsylvania if fully disclosed to all parties and all consent. Undisclosed multiple compensation creates a conflict of interest and violates the duty of loyalty.
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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