Which of the following must be in writing to be legally binding in real estate transactions?

Prepare for the Georgia Real Estate License Test. Use flashcards and multiple choice questions to enhance your understanding of the laws and rules. Get exam-ready with detailed explanations and hints!

In real estate transactions, certain agreements have to be documented in writing to be legally enforceable. Referral agreements are one such example; they involve the compensation arrangement between agents who refer clients to one another. These agreements are significant because they clarify the expectations and obligations of all parties involved, ensuring there is a clear understanding of the terms.

Written documentation also provides a level of protection for all parties by creating a record of the agreement, which can be referenced if disputes arise. This is why referral agreements, which typically outline the terms and commission structures related to the referral, must be in writing to ensure their enforceability under Georgia law.

In contrast, verbal contracts and agreements related to showing a property do not typically hold the same binding legal weight without written documentation in most situations. Earnest money, while important in a real estate transaction, does not, by itself, require a written agreement for the act of offering it; rather, it's the purchase agreement that usually outlines its terms.

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