What must all exclusive brokerage agreements be?

All exclusive brokerage agreements must be written and formal to ensure clarity and enforceability. A written agreement serves several critical purposes: it provides a clear record of the terms and conditions agreed upon by both parties, which helps prevent misunderstandings or disputes in the future. It also creates a legally binding contract that can be enforced in a court of law if necessary.

Formal documentation is essential in the real estate industry due to the significant financial implications involved in property transactions. It establishes the rights and responsibilities of both the broker and the client, ensuring that both parties have a mutual understanding of their expectations and obligations. Written agreements also comply with legal requirements in many jurisdictions, which often mandate that certain types of agreements, such as those involving real estate listings, must be documented in writing to be valid.