Which of the following is incorrect regarding the payment of a real estate commission in Maine?

The correct response highlights a fundamental principle of real estate transactions concerning ethical practices and disclosures. In Maine, as in most jurisdictions, agents are required to operate transparently. This means that any additional commission received by a listing agent from a buyer must be disclosed to all parties involved in the transaction. Failing to disclose such information violates agency rules and ethical standards, which prioritize honesty and transparency in business dealings.

This principle ensures that clients are fully informed about any potential conflicts of interest that may arise from dual compensation. Proper disclosure is essential to maintaining trust and integrity within the real estate industry, allowing clients to make informed decisions. In contrast, options suggesting that a buyer's agent fee can be paid by the seller or that an agent can set their fees within agency policies, are consistent with real estate practices as they offer flexibility in commission structures and payment arrangements. The stipulation regarding the timing of commission payments aligns with the contractual nature of real estate agreements and must adhere to the terms outlined in the listing agreement.