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Simple English definitions for legal terms
double commission
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A quick definition of double commission:
Double commission: When someone is paid twice for the same job. For example, if a person helps sell a house and gets paid by both the seller and the buyer, that's double commission. It's like getting paid twice for doing one thing!
A more thorough explanation:
Definition: Double commission is a fee paid to a person for a particular transaction by both the seller and the buyer, usually as a percentage of the money received from the transaction. This happens when the same person acts in different capacities for both the seller and the buyer.
- A real estate agent who represents both the seller and the buyer in a transaction may receive double commission.
- A stockbroker who buys and sells stocks for both the seller and the buyer may also receive double commission.
These examples illustrate how a person can receive double commission by representing both the seller and the buyer in a transaction. This can create a conflict of interest, as the person may be motivated to prioritize their own financial gain over the best interests of their clients.