What type of agreement allows a broker to represent a buyer or seller?

A written agreement, such as a listing or buyer agency agreement, is the correct choice because it establishes a formal and legal relationship between the broker and the client, whether they are a buyer or a seller. This type of agreement details the rights and responsibilities of both parties, including the broker's authority to act on behalf of the client, the terms of representation, the commission structure, and other pertinent conditions regarding the transaction.

Written agreements serve to protect both the broker and the client by providing clarity and enforceability. They ensure that all parties are aware of their obligations, which helps prevent disputes and misunderstandings in the real estate process. This documentation is crucial in the event that any issues or disagreements arise, as it provides a clear reference for the terms agreed upon.

While oral agreements may sometimes be used informally to negotiate terms, they are generally not recommended in real estate as they can lead to ambiguity and lack enforceable power. Implicit agreements, which arise from the actions or behaviors of the parties involved rather than explicit communication, can also create confusion and are not a reliable basis for the representation. Non-disclosure agreements do not pertain to the representation of buyers or sellers; they primarily focus on protecting confidential information rather than establishing a broker-client relationship.