What characterizes a Sole Agency agreement?

A Sole Agency agreement is characterized primarily by the fact that the brokerage enters into a formal written service agreement with a client. This written agreement clearly outlines the duties and responsibilities of the brokerage towards the client, establishing a dedicated representation relationship.

In this type of agreement, the brokerage is typically tasked with representing the client’s interests exclusively in the transaction, rather than providing dual agency or representing multiple parties. This formal contract not only protects the client's interests but also establishes a legal framework that governs their relationship with the brokerage, specifying the terms of service and any expectations from both parties.

The requirement for a written agreement helps to ensure that there is a clear understanding of the obligations involved, which is essential in property management and real estate transactions. It provides a reference point for both the client and the brokerage, helping to prevent misunderstandings about duties, fees, and other critical elements of the working relationship.