What is a necessary element for a broker to represent a seller or buyer legally?

A written agreement is a fundamental component for a broker to legally represent a seller or buyer in a real estate transaction. This documentation, often referred to as a listing agreement or buyer's agency agreement, outlines the terms of the relationship between the broker and the client. It provides clarity on the rights and responsibilities of both parties, ensures that there is an understanding of what services will be provided, and offers legal protection in case of disputes.

The requirement for a written agreement is rooted in real estate laws and regulations, which emphasize the importance of having clear and enforceable documentation to govern the relationship. This written contract acts as evidence of the intent to engage in a professional relationship, effectively legitimizing the broker's authority to act on behalf of the client in real estate matters.

In practice, oral agreements or handshake deals may lack enforceability and can lead to misunderstandings or disputes. Likewise, mere verbal confirmation or simple registration with the state does not fulfill the legal requirements necessary for agency representation and does not establish the formal obligations that a written agreement provides. Thus, a written agreement is essential for legally binding representation.