When must all agency relationships be documented in writing?

Agency relationships must be documented in writing before the first offer is made to ensure clarity and protect the interests of all parties involved. This documentation establishes the formal relationship between the agent and the principal, thereby delineating roles, responsibilities, and expectations from the outset. Having a written agreement in place before any offers helps prevent misunderstandings and provides a clear framework for the agent's authority and obligations.

By codifying the agency relationship early, it ensures that all parties are aware of their rights and duties, fostering transparency and accountability from the very beginning of the transaction process. This is particularly important in real estate, where agency relationships can significantly affect the outcomes of negotiations and the overall transaction.