What is required for a brokerage to operate legally?

For a brokerage to operate legally, it is essential to register as a business with the Registry of Joint Stocks. This registration is a formal process that grants the brokerage its legal status to conduct business within the jurisdiction, ensuring compliance with local laws and regulations. It establishes the brokerage as a recognized entity that can engage in real estate transactions and manage client relationships.

This framework provides accountability and legitimacy to the brokerage's operations, which is crucial for maintaining trust with clients and adhering to industry standards. Additionally, registration may also involve acquiring the necessary licenses and permits required for real estate practice, further solidifying the brokerage’s compliance with the law.

In contrast, a verbal agreement with clients does not provide the legal protections or formal recognition necessary for a brokerage to operate effectively. Similarly, operating without adherence to commission regulations would not only be unethical but also illegal, as it undermines the standards set by real estate authorities to protect consumers and ensure fair practices in transactions. Therefore, registration as a business is the foundational step for any brokerage to function legally and ethically in the real estate marketplace.