If a real estate broker's services are used by a seller to locate a buyer without a written agreement, what is true about the broker's commission claim?

Study for the California Real Estate Broker Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Prepare efficiently and effectively for your licensing exam!

In California, a real estate broker typically needs a written agreement to earn a commission from a sale. This requirement is grounded in the principle of contracts, where the terms and conditions of the broker's compensation must be clearly defined in a written document to be enforceable.

Without a written agreement, the broker's ability to collect a commission is jeopardized. The lack of this agreement means there is no contractual obligation for the seller to pay the broker for services rendered, including locating a buyer. Courts generally uphold the necessity for a written agreement in these scenarios to ensure that both parties are clear about the terms of the relationship.

This principle of needing a written agreement applies primarily to the collection of commissions in real estate transactions, emphasizing the importance of formalizing arrangements to protect both the broker and the seller. Therefore, the broker cannot enforce the claim for a commission without such documentation.

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