Which of the following is necessary for a listing agreement to be considered valid if it lasts longer than one year?

Which of the following is necessary for a listing agreement to be considered valid if it lasts longer than one year?

• A. It must be a verbal agreement between the parties
• B. It must be a written document signed by both parties
• C. It requires approval from the local real estate board
• D. It can be submitted via electronic communication

Answer: (B)

For a listing agreement to be valid when it extends beyond one year, it must be a written document signed by both parties. This requirement is rooted in laws governing real estate transactions, including the Statute of Frauds, which aims to prevent misunderstandings and fraudulent claims. A written agreement provides clear evidence of the terms and conditions agreed upon by the parties, ensuring that both the seller and the agent have a mutual understanding and that their rights and obligations are protected. Verbal agreements lack the enforceability that written contracts possess, particularly in long-term commitments such as those lasting over one year. Approval from the local real estate board or the option of submitting agreements via electronic communication is not a standard criterion for validity in this context. Although electronic submissions can be considered valid if they follow applicable laws, the fundamental requirement remains the necessity of a written document signed by both parties for agreements that exceed one year.

For a listing agreement to be valid when it extends beyond one year, it must be a written document signed by both parties. This requirement is rooted in laws governing real estate transactions, including the Statute of Frauds, which aims to prevent misunderstandings and fraudulent claims. A written agreement provides clear evidence of the terms and conditions agreed upon by the parties, ensuring that both the seller and the agent have a mutual understanding and that their rights and obligations are protected.

Verbal agreements lack the enforceability that written contracts possess, particularly in long-term commitments such as those lasting over one year. Approval from the local real estate board or the option of submitting agreements via electronic communication is not a standard criterion for validity in this context. Although electronic submissions can be considered valid if they follow applicable laws, the fundamental requirement remains the necessity of a written document signed by both parties for agreements that exceed one year.