Which of the following is NOT a requirement for a broker to enforce payment of a commission?

Prepare for the Champions Law of Agency Test. Use flashcards and multiple choice questions with hints and explanations to boost readiness. Get exam-ready!

To successfully enforce payment of a commission, a broker must typically have certain established criteria in place. A valid real estate license is crucial because it legitimizes the broker's ability to operate and involves legal recognition of their capacity to earn commissions in real estate transactions. Additionally, a signed employment agreement with a commission promise solidifies the broker's rights and entitlements regarding payment, providing a formalized understanding of the commission structure between the broker and the client.

Furthermore, being the procuring cause of sale is essential, as it typically establishes that the broker played a critical role in bringing about the transaction, thereby justifying the claim for a commission.

In contrast, a client’s verbal agreement does not meet the necessary formalities required for enforceability. Verbal agreements can often lead to misunderstandings or disputes regarding terms, making them less reliable as a basis for enforcing a commission. Legal and agency practices generally require written agreements to ensure clarity and enforceability in business transactions, especially in real estate. This aspect underscores the importance of formal agreements in establishing rights and obligations concerning commissions in real estate transactions.

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