What is the requirement for agency agreements in order for a broker to collect a commission?

To collect a commission, agency agreements must be in writing or confirmed in writing. This requirement is grounded in California real estate laws that specify the necessity of a written agreement between the principal and the agent. A written contract helps to clarify the terms of the agency relationship, ensures that both parties understand their rights and obligations, and provides legal protection for both the broker and the client.

Verbal agreements can lead to disputes over the terms and understanding of the agreement, making it difficult to enforce or prove the existence of a commission's entitlement. The requirement for writing minimizes misunderstandings about the agency's duties and compensations, ensuring transparency and accountability in the transaction.

The other choices may introduce additional conditions or requirements that do not align with the law. For example, while multiple signatures can be involved in some agreements, they are not a prerequisite for commission eligibility. Similarly, requiring a witness would not be a standard requirement for real estate commission agreements, nor would an agreement being verbal meet the legal requirements to collect a commission. Thus, having a written or confirmed written agreement stands as the foundational necessity for brokers to earn their commission legally and effectively.