Contracts
Under California law, a real estate commission agreement is enforceable only if it is:
AAgreed upon verbally by both parties
BIn writing and signed by the party to be charged✓ Correct
CApproved by the DRE
DAt least 5% of the sale price
Explanation
Under California's Statute of Frauds (Civil Code 1624), an agreement authorizing an agent to purchase, sell, or lease real property for compensation must be in writing and signed by the party to be charged (usually the seller) to be enforceable.
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