Does a licensee need to have a listing agreement with a family member when assisting in the sale of a home?

Does a licensee need to have a listing agreement with a family member when assisting in the sale of a home?

• A. Yes, because there must be an agency agreement in place prior to providing brokerage services
• B. No, family members do not require formal agreements
• C. Only if the family member requests it
• D. Yes, but only if a commission is charged

Answer: (A)

A licensee must have a listing agreement in place before providing brokerage services, including when assisting family members in the sale of a home. This requirement ensures that there is a clear understanding of the roles and responsibilities of both parties involved in the transaction. The listing agreement acts as a formal contract that outlines the terms under which the licensee will assist in the sale, including expectations for communication, effort, and other critical details that help to manage the relationship effectively. Having a formal agreement also protects the interests of both the broker and the family member, ensuring that there is legal documentation of the relationship and the services to be provided. This protects against misunderstandings and establishes a professional standard that applies regardless of the personal relationship between the parties involved. Therefore, it's essential for a licensee to adhere to this practice even when dealing with family.

A licensee must have a listing agreement in place before providing brokerage services, including when assisting family members in the sale of a home. This requirement ensures that there is a clear understanding of the roles and responsibilities of both parties involved in the transaction. The listing agreement acts as a formal contract that outlines the terms under which the licensee will assist in the sale, including expectations for communication, effort, and other critical details that help to manage the relationship effectively.

Having a formal agreement also protects the interests of both the broker and the family member, ensuring that there is legal documentation of the relationship and the services to be provided. This protects against misunderstandings and establishes a professional standard that applies regardless of the personal relationship between the parties involved. Therefore, it's essential for a licensee to adhere to this practice even when dealing with family.