RES exam question on Ethics & Professional Conduct: Salesperson Alan of Agency X holds a seller's exclusive listing
Salesperson Alan of Agency X holds a seller's exclusive listing. Salesperson Bella of Agency Y introduces the buyer, who has appointed her. The seller pays commission to Agency X, which shares part of it with Agency Y under a co-broking arrangement. Which of the following statements is/are correct? (i) Alan and Bella each represent one side, so the arrangement is not dual representation. (ii) Bella may take her share directly from the seller, since it is the seller who pays the commission. (iii) Alan may also ask the buyer for a fee, since the buyer benefited from Alan's listing. (iv) Co-broking between two agencies needs CEA's prior approval for each transaction.
- A(i) and (ii) only
- B(i) only
- C(i), (ii) and (iii) only
- D(i) and (iv) only
Show answer & explanation
Answer
B. (i) only
Explanation
Answer: (i) only. Each side has its own salesperson, so it is not dual representation; the payment and fee claims break the rules.(i) True. Co-broking, with each salesperson representing one side, is allowed and is not dual representation.Rule: Co-broking is allowed and is not dual representation. Commission is paid to the estate agent, never to the salesperson personally, and no fee may be sought from someone who did not engage you.Source: RESPrep /learn/marketing-listings-and-advertising-rules and /learn/estate-agency-agreements-and-commission, current at 1 Oct 2026; Code of Ethics and Professional Client Care, First Schedule to the Estate Agents (Estate Agency Work) Regulations 2010 (current at 1 October 2026), para 7(4)
Why the other options are wrong
- (ii) False. Bella's share runs from Agency X to Agency Y, and she is paid by her own agency.
- (iii) False. The buyer did not engage Alan, so asking him for a fee breaches the Code.
- (iv) False. It invents a CEA approval step that does not exist.
Study the concept behind this question: CEA Code of Ethics & Professional Conduct
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