The real estate associations and laws are in place to protect the customer. The broker is legally bound to be fair, honest and disclose information in writing that would affect their client.
Any compensation agreement to the benefit of a broker which could place him in a conflict of interest must be disclosed to the customer in writing. Moreover, a broker who engages in a real estate transaction on his own behalf must inform the seller or the buyer. If he fails to do so, the promise pertaining may become null and void and the broker would be held liable and be in front the disciplinary committee. As well If a broker receives compensation from a mortgage broker they has referred to you, they must inform you of this in writing.
Rules about a broker representing both seller and buyer
As a real estate broker, if I enter a contract to sell with a home owner and list their property, it’s my legal obligation to facilitate any transaction, that includes a potential buyer that visits without their own representation. Legally, my client is the seller, however it’s my obligation to meditate the full transaction and to protect both parties. My insurance would cover both buyer and seller.