Maine Real Estate License Practice Exam

Which of the following is incorrect regarding the payment of a real estate commission in Maine?

1. A buyer's agent fee may be paid by the seller

2. An agent can establish any amount to charge within agency policies

3. A listing agent can receive an additional commission from the buyer without disclosing

4. The commission is paid at the time agreed upon in the listing agreement

The correct answer is: A listing agent can receive an additional commission from the buyer without disclosing

The correct response highlights a fundamental principle of real estate transactions concerning ethical practices and disclosures. In Maine, as in most jurisdictions, agents are required to operate transparently. This means that any additional commission received by a listing agent from a buyer must be disclosed to all parties involved in the transaction. Failing to disclose such information violates agency rules and ethical standards, which prioritize honesty and transparency in business dealings. This principle ensures that clients are fully informed about any potential conflicts of interest that may arise from dual compensation. Proper disclosure is essential to maintaining trust and integrity within the real estate industry, allowing clients to make informed decisions. In contrast, options suggesting that a buyer's agent fee can be paid by the seller or that an agent can set their fees within agency policies, are consistent with real estate practices as they offer flexibility in commission structures and payment arrangements. The stipulation regarding the timing of commission payments aligns with the contractual nature of real estate agreements and must adhere to the terms outlined in the listing agreement.