Rhode Island License Law
A Rhode Island broker receives a commission from both the buyer and the seller in the same transaction without disclosure. This constitutes:
ADouble commission, which is standard practice
BUndisclosed dual compensation, which is a violation of fiduciary duty and license law✓ Correct
CA lawful arrangement if both parties are satisfied
DOnly an ethical violation, not a legal one
Explanation
Receiving compensation from both parties without full disclosure and consent violates the fiduciary duty of disclosure and is a violation of Rhode Island license law. Both parties must be informed of the double compensation and consent to it.
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