What is required before a licensee can represent a client in a real estate transaction in New Hampshire?

In New Hampshire, before a licensee can represent a client in a real estate transaction, it is essential to have a written agreement or contract. This written document not only formalizes the relationship between the licensee and the client but also outlines the duties and obligations of each party. It serves to protect the interests of both the licensee and the client by clearly defining the scope of the representation, the terms of the agreement, and any fees or commissions involved.

The importance of a written agreement is emphasized in real estate practice because it provides a legal framework for the relationship. Having clear, documented terms helps prevent misunderstandings and disputes later in the transaction process. The written contract must be signed by both parties to be enforceable, which demonstrates mutual consent to the terms laid out.

Other forms of agreement, such as verbal agreements or oral understandings, are not sufficient in the context of real estate transactions in New Hampshire. They lack the legal enforceability and clarity that a written contract provides, which can lead to complications in case of disagreements. Additionally, management approval does not fulfill the necessary requirement of establishing a formal client representation; it is not a substitute for the direct client-agent relationship established through a written contract.