Indiana Real Estate Broker Practice Exam

For an exclusive buyer agency agreement to be valid and effective, it is essential to have written documentation that clearly outlines the terms and conditions of the exclusivity. This written agreement serves several critical purposes: it provides legal evidence of the relationship between the buyer and the agent, establishes the scope of representation, and details the obligations of both parties.

Having a written agreement helps protect the interests of both the buyer and the agent. It ensures that the rights and responsibilities are understood and can be referred to in the event of any disputes. Verbal agreements, while they might be negotiated, lack the enforceability and clarity that a written contract provides, which is why they are not sufficient for an exclusive relationship in a real estate context.

Additionally, a referral from another agency or a property listing from the agent are not necessary components for establishing an exclusive buyer agency agreement. While these actions might enhance the buyer's experience or provide additional context for the service, they do not meet the fundamental requirement of having a valid, exclusive commitment documented in writing.