Final answer:
The incorrect statement regarding the creation of an intermediary brokerage is the assertion that the listing agreement addresses intermediary status. In reality, the listing agreement usually does not involve intermediary brokerage, which is instead covered by the buyer representation agreement or by additional consent provided by both buyer and seller.
Step-by-step explanation:
The subject of this question is related to the process and legal considerations of establishing an intermediary brokerage in a real estate transaction. To clarify the concept, an intermediary in real estate acts as a broker for both the buyer and the seller. Let's address the points made in the question one by one.
- The listing agreement does not address intermediary status: This statement is typically true. The listing agreement is between the seller and the listing broker and does not usually address the issue of intermediary status. It's mainly focused on authorizing the sale, detailing the commission, and defining listing terms.
- The buyer representation agreement addresses intermediary status: This is also usually true. This agreement can include a discussion of intermediary brokerage, outlining how the brokerage could potentially work with both the seller and the buyer in a transaction.
- A written contract signed by the buyer and seller is mandatory: This is a necessary part of the real estate transaction process. However, when it comes to intermediary status, it is the broker that needs to have written consent from both the buyer and seller for the intermediary brokerage to be valid.
- Permission for intermediary status is needed from the buyer and seller: This is true. Both parties must agree to the broker acting as an intermediary and they must be informed of the implications.
Therefore, the incorrect statement or the 'except' part of the question is A. The listing agreement does not address intermediary status. This is because the statement is indeed typically correct in most cases; therefore, it's not the exception among the statements given.