California Real Estate Practice Exam

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If a broker asks the seller to increase the commission at the time of the sale, and the seller agrees to do so, this would be:

Against the law
Illegal
Legal
None of the above

The correct answer is: Against the law

In this scenario, if a broker requests the seller to increase the commission at the time of the sale and the seller agrees, this situation is actually legal and acceptable within the realm of real estate transactions. The broker and seller can negotiate commission fees, and they can reach an agreement on the rate at any time, provided there is mutual consent. The misconception might stem from the belief that commission fees are fixed or determined upfront and cannot be altered, but in practice, commissions are negotiable. The seller has the right to adjust the commission as agreed by both parties, as long as it aligns with their original listing agreement and the subsequent agreement reached at the time of sale. While ethical considerations and transparency are vital in these situations to avoid any potential conflicts or misunderstandings, it is not against the law for the seller to agree to a commission increase at that time. Therefore, the assertion that this is "against the law" is inaccurate.