What must an agent do for clients to establish a commission entitlement according to real estate guidelines?

To establish entitlement to a commission in real estate transactions, it is essential for an agent to have a written agreement in place with their client. This written agreement serves as the legal foundation that outlines the terms of the agent's representation, including the scope of services provided and the commission structure. Such documentation clarifies the expectations for both the agent and the client, ensuring that the agent's right to a commission is legally recognized if the terms of the agreement are met.

While verbal agreements may exist, they can lead to misunderstandings and difficulties in enforcement, as they lack the formal recognition and clarity that a written contract provides. Additionally, having a written agreement can protect both parties in the event of disputes. Meanwhile, completing annual licensing is important for maintaining the agent’s ability to legally practice, but it does not directly establish commission entitlement. Similarly, working without client representation does not imply any commission rights at all, as there would be no formal arrangement between the agent and a client.