What is a critical requirement before any real estate brokerage services are provided?

Before any real estate brokerage services can be provided, it is essential to have a written agreement outlining the services. This written agreement not only formalizes the relationship between the broker and the client but also specifies the services that will be provided, the responsibilities of each party, and the terms of compensation. Establishing a clear understanding from the outset helps prevent misunderstandings and disputes down the line.

In the context of real estate, having a written agreement is critical for compliance with legal and regulatory requirements, as many jurisdictions mandate that real estate services be rendered only under such agreements. This documentation not only protects the interests of both the broker and the client but also serves as a safeguard against potential legal issues.

While a listing agreement is important in certain circumstances, especially in the case of representing a seller, it is the broader written agreement that captures the full scope of services and expectations between the brokerage and the client. Moreover, a referral from a previous client or a verbal agreement lacks the necessary legal enforceability and clarity that a written agreement provides.