What is necessary for an agent to sue for a commission?

Prepare for the TREC Law of Agency Exam. Study with multiple-choice questions and detailed explanations. Get confident for your test!

For an agent to successfully sue for a commission, having a written agreement with the client is essential. A written agreement provides clear documentation of the terms and conditions agreed upon by both the agent and the client regarding the commission. It serves as evidence of the relationship between the parties and outlines the expectations and obligations of each party, including the specific commission rates and the circumstances under which the commission is earned.

While verbal agreements can sometimes be enforceable, they are often difficult to prove in a dispute, making a written document significantly more advantageous. Similarly, a public announcement of the agreement does not establish a legal basis for claiming a commission, nor does the mere existence of a listing agreement with the seller, unless it includes the necessary terms and conditions regarding the agent's commission. Thus, the written agreement stands as the foundational requirement for an agent seeking legal recourse for their commission.

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