Is a written employment agreement between a salesperson and a broker optional?

A written employment agreement between a salesperson and a broker is mandatory. This requirement helps establish a clear understanding of the terms and conditions of the working relationship, including the responsibilities, compensation, and expectations of both parties. California law emphasizes the importance of documentation in real estate practices to protect both the broker and the salesperson. Having a written agreement reduces the risk of misunderstandings or disputes regarding the employment terms and ensures compliance with industry regulations.

While options suggesting that the agreement could be optional might seem plausible, they overlook the legal frameworks that dictate professional relationships within real estate. Such frameworks are designed to safeguard the interests and rights of both brokers and salespersons, making a written contract not just beneficial but essential for defining their working relationship.