When can a licensee receive commission from both parties in the same transaction?

In real estate transactions, commission structures are often bound by legal and ethical considerations to protect the interests of all parties involved. A licensee receiving a commission from both the buyer and seller in the same transaction can lead to conflicts of interest unless specific conditions are met.

When a dual agency agreement is in place, the licensee can act on behalf of both parties with full disclosure and consent. This ensures that both the buyer and seller are aware of the situation and agree to the dual representation. Without such an agreement, receiving a commission from both parties could violate fiduciary duties and ethical guidelines, leading to situations where one party's interests may be compromised for the benefit of the agent.

Thus, the correct choice emphasizes that commissions from both parties are only permissible under stipulated circumstances, primarily through a duly established dual agency agreement. This framework is essential to maintain transparency and uphold the integrity of the real estate profession.