What is the primary purpose of a written service agreement between a brokerage and a client in Alberta?
Correct Answer
B) To establish the agency relationship, define its services, and set each party's obligations
A written service agreement in Alberta establishes the formal agency relationship between the brokerage and the client. It defines the scope of services to be provided, the obligations of both parties, compensation arrangements, and the duration of the agreement. RECA requires that service agreements be in writing.
Why This Is the Correct Answer
Under RECA rules, a written service agreement formally creates the agency relationship between brokerage and client. It defines the scope of services, compensation terms, duration, and obligations of both parties. RECA mandates written agreements to ensure clarity and protect both the brokerage and client.
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