When does the KREC Exclusive Right to Sell Agency Contract become legally binding?

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The KREC Exclusive Right to Sell Agency Contract becomes legally binding when it is signed by the seller, the principal broker, and the authorized agent. This tripartite agreement creates a legal obligation for all parties involved, outlining the terms of representation and the responsibilities of the broker and agent in marketing and selling the property.

Until all parties have signed, the agreement lacks the enforceability necessary for a binding contract. The seller must agree to the terms, the principal broker acts on behalf of the brokerage, and the authorized agent must be designated to represent the seller’s interests. Each signature confirms that all parties understand and accept the terms of the contract, thereby establishing legal obligations and rights.

This understanding is crucial when examining how agency relationships are structured and the importance of each party’s agreement in contract formation.

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