Question 1
Owen and Priya both work at XYZ Realty. Owen represents the seller and Priya the buyer in one private resale. Owen tells Priya that, because they co-broke, CEA will decide how they split the co-brokerage fee, and that any dispute over the split can be taken to the Small Claims Tribunal.
Consider the following statements.
- (i) What Owen and Priya are doing — each acting for his or her own client in the one resale — is co-broking.
- (ii) Owen is right that CEA will determine how he and Priya split the co-brokerage fee.
- (iii) Being from the same agency, Owen and Priya face a conflict of interest requiring each client's written consent.
- (iv) Owen is right that a dispute over his and Priya's fee split may be taken to the Small Claims Tribunal.
Show the answer and full explanation
Answer: B
The rule. Co-broking is two salespersons cooperating, each for their own client's best interests, in one transaction. How the co-brokerage fee is split is a matter for the salespersons and their agencies, not for CEA, and a fee-split dispute is not a matter for the Small Claims Tribunal. Where the two are from the same agency, that is a conflict requiring each client's written consent.
Why B is correct. (i) what Owen and Priya are doing is co-broking and (iii) the same-agency conflict needing written consent are correct. (ii) is false — CEA does not fix their fee split. (iv) is false — the Small Claims Tribunal does not resolve the split.
The other options.
- A adds the false (ii), giving CEA the fee-split role.
- C adds the false (iv), the Small Claims Tribunal.
- D drops the correct (i), the definition itself.
Exam note. CEA does not referee commission splits, and the Tribunal is not the forum. The same-agency conflict is the real disclosure point.
Where the two are from the same agency, that is a conflict requiring each client's written consent →