National Real Estate Practice Exam

What is an in-company transaction?

1. When a buyer and seller are represented by different brokerages

2. When a buyer and seller are both represented by the same brokerage

3. A type of unilateral contract

4. An agreement between a client and customer

The correct answer is: When a buyer and seller are both represented by the same brokerage

An in-company transaction occurs when both the buyer and seller are represented by the same brokerage. This type of transaction is significant in real estate as it can streamline communication and negotiations, allowing the brokerage to facilitate the entire process under one roof. This setup can also lead to more efficient handling of paperwork and potentially quicker deals, although it requires careful adherence to ethical standards and disclosure to ensure that both parties' interests are adequately represented. In contrast, scenarios where a buyer and seller are represented by different brokerages involve separate entities, which brings in different processes and potentially more complex negotiation dynamics. The other options do not accurately represent the nature of an in-company transaction either. For instance, a unilateral contract typically refers to an agreement where one party makes a promise and the other party is not obligated to act, and an agreement between a client and customer describes a different relationship which isn't specifically tied to the brokerage context. Hence, representing both parties within one brokerage is what characterizes an in-company transaction.