What must be established for a real estate agent to legally represent a client?

For a real estate agent to legally represent a client, a written agreement must be established. This formal document, often referred to as a listing agreement or buyer's representation agreement, serves several important purposes. Firstly, it clearly defines the scope of the relationship between the agent and the client, outlining the responsibilities, expectations, and terms of the agreement. Secondly, having a written agreement helps protect both parties; it provides legal documentation that can be referred to should any disputes arise regarding the representation.

While verbal agreements can occur in practice, they may lead to misunderstandings and are less enforceable in a legal context compared to written contracts. Similarly, a referral, while useful in connecting clients with agents, does not itself establish a client-agent relationship. Lastly, the payment of a retainer might be a component of some agreements, but it does not constitute the establishment of a legal representation. Thus, a written agreement is essential for clarity and legal recognition of the agent's role in representing the client's interests in real estate transactions.