PSI Oklahoma Real Estate Practice Test

How must confirmation of brokerage services agreement terms be provided?

1. Orally during negotiations

2. In a separate provision or document attached to the agreement

3. Only when requested by one party

4. In the body of the contract itself without additional documentation

The correct answer is: In a separate provision or document attached to the agreement

Confirmation of brokerage services agreement terms must be provided in a separate provision or document attached to the agreement to ensure clarity and legal compliance. This requirement helps to create a clear record of the terms and conditions that both parties have agreed upon, minimizing misunderstandings and potential disputes later on. By detailing the terms in a specific document, it not only adheres to best practices in real estate transactions but also aligns with legal expectations for transparency and accountability. Providing confirmation in a separate document allows both the brokerage and the client to have a focused and precise reference of the specific services to be performed, the fees involved, and other pertinent details. This method reinforces the professional relationship and establishes clear expectations, which is vital in real estate dealings. While other methods, such as including terms in the body of the contract or presenting them orally during negotiations, may be less formal, they do not provide the same level of clarity and legal protection that a dedicated document does. This makes the approach of having a separate provision or document the preferred and most effective means of confirming brokerage service agreement terms.