When is a licensee permitted to conduct business for an owner?

A licensee is permitted to conduct business for an owner when a written contract is signed. This written agreement clearly outlines the terms and conditions of the relationship between the owner and the licensee, ensuring that both parties understand their rights and responsibilities. Such contracts provide legal protection and clarity, establishing that the licensee is authorized to act on behalf of the owner in managing or facilitating the sale of the property.

Verbal agreements, while they may seem convenient, do not offer the same level of legal protection and can lead to misunderstandings regarding the duties and obligations of each party. Listing a property online or obtaining verbal consent does not create a binding legal relationship that permits a licensee to conduct business on behalf of the owner. A written contract is crucial in the real estate industry to ensure that all transactions are documented and enforceable.