Legal Definitions - double commission

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.