Which agency relationship requires a written agreement in California?

In California, the agency relationship that requires a written agreement is specifically related to residential transactions involving one to four units. This requirement is outlined in the California Civil Code, which mandates that any agreement between a real estate agent and a client in these types of residential transactions must be in writing to be enforceable. This protection ensures that both parties have a clear understanding of the terms and conditions of their relationship, which benefits the agent and the client by providing documentation that can help resolve disputes or misunderstandings.

While there are certain situations in real estate transactions where agreements can be oral, the law recognizes the importance of a written agreement for residential properties of this size due to the complexities and potential financial implications involved. This written agreement ensures that the rights and obligations of both the agent and the client are clearly defined.

Options that suggest other scenarios, such as all real estate transactions or commercial transactions only, do not align with the specific legal requirement for a written agreement in the context of residential transactions involving one to four units. Similarly, while leases longer than one year often do require written agreements under lease laws, this requirement is not specific to agency relationships. Therefore, this focus on residential transactions is crucial to understanding California's regulations regarding agency relationships.