Final answer:
All assurances to pay a broker fee in a real estate transaction must be in writing and signed according to law. This is to comply with the statute of fraud and to prevent fraud and misunderstandings. Having a written agreement ensures that the terms are clear and legally enforceable.
Step-by-step explanation:
In response to the question regarding agreements to pay a broker fee in a real estate transaction, it is important to understand that such agreements must comply with real estate law. One key aspect of these agreements is that they need to be documented in writing to be legally enforceable.
All assurances to pay a broker fee on a real estate transaction are required by law to be in writing and signed by the person who agrees that a fee will be paid. This requirement is part of the statute of frauds, which is a legal concept that requires certain types of contracts, including those related to real estate transactions, to be in writing to prevent fraud and misunderstandings.
The documentation should clearly outline the terms of the agreement, including the amount of the fee, when and how it will be paid, and any other pertinent details. This protects all parties involved - the property owner, the broker, and any authorized representatives. The right to enter into contracts is inherent to property ownership, but to ensure these contracts are recognized by the law, they must be formalized through written agreements.
When such an agreement is to be executed, it may include a phrase along the lines of 'WITNESS WHEREOF the parties have caused this agreement to be executed,' followed by the signatures of the authorized individuals. This signifies that the parties involved have read, understood, and agreed to the terms. The requirement for a written broker fee agreement is an example of how the law provides a framework for conducting real estate transactions transparently and with accountability.