Under what condition can a broker collect a commission from both the seller and the buyer in a limited agency situation?

In a limited agency situation, a broker can collect a commission from both the seller and the buyer if both parties give their informed consent to the arrangement. Informed consent means that both the seller and the buyer fully understand the implications of the broker representing both sides in the transaction, including any potential conflicts of interest that may arise. This is crucial because it ensures transparency and protects the interests of both parties involved in the real estate transaction.

When both parties provide their consent, it indicates that they are comfortable with the broker acting in a dual capacity and are willing to proceed under those circumstances. This practice is closely regulated in real estate to ensure that brokers operate ethically and maintain the trust of their clients.

The other options do not meet the necessary criteria for a broker to collect commissions from both parties in a limited agency. Consent from just one party does not suffice, nor is it relevant that the buyer agrees to a higher commission rate or that the seller waives their negotiating rights. The core requirement is mutual informed consent from both the seller and the buyer.