What is required for a broker to legally sign a contract on behalf of a buyer or seller?

A broker must have formal written consent from the buyer or seller to legally sign a contract on their behalf. This ensures that the broker has the necessary authority to act in the interests of the buyer or seller, making the transactions legally binding. Written consent serves as clear documentation that both parties have agreed to the specific terms outlined in the contract and confirms the broker's role in representing their client. Without such consent, the broker may be acting outside the scope of their authority, which could lead to legal complications or disputes regarding the validity of the contract.

Other methods, such as verbal assurance or approvals from third parties, do not provide the same level of legal protection or clarity as written consent. Additionally, while a power of attorney can allow a person to act on behalf of another, it typically involves a more formal legal process and may not always be necessary when a broker simply needs consent to sign standard agreements.