Thursday, March 27, 2014

Why Listing Agreements Always Have To Be In Writing


California Civil Code Section 1624(a) invalidates verbal listing agreements to protect homeowners from false agent and broker commission claims. Under Section 1624 an agreement employing a real estate agent to sell a home for compensation is unenforceable unless in writing. Cases in which real estate agents relied upon oral agreements for compensation have reinforced the strict language of the statute by denying these agents compensation. The one instance in which agents may be able to enforce verbal listing agreements is if they were defrauded by the seller, but usually this only applies if the seller made a misrepresentation about signing the listing agreement and the agent reasonably took the sellers word that they had signed. To learn more about listing agreements access the santarosarealestate.info real estate blog. In short, if California real estate agents want to enforce their right to a commission they should always have a written and signed listing agreement.