How is a brokerage relationship created?

A brokerage relationship is officially established through a written contract between the broker and the client. This written agreement outlines the rights and responsibilities of both parties, ensuring clarity and legal protection. It typically includes details about the scope of services provided, commission agreements, and the duration of the relationship, which helps to prevent misunderstandings.

While verbal agreements or implied consent during negotiations can sometimes create perceptions of a working relationship, they do not provide the same level of legal protection and enforceability as a written contract. Similarly, providing services without a contract does not create a formal brokerage relationship, as there is no documented agreement to define the terms of service or obligations. Therefore, the correct answer emphasizes the importance of a clear, written document in establishing a professional brokerage relationship.