Which of the following is a best practice when paying non-affiliated brokers?

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Establishing a written agreement is a crucial best practice when paying non-affiliated brokers. This approach ensures clarity and mutual understanding regarding the terms of the payment and any associated responsibilities. A written agreement serves as a formal record of the transaction, providing evidence of the terms agreed upon by both parties. It also minimizes the risk of misunderstandings or disputes that could arise later on.

In real estate transactions, having documentation is vital not only for accountability but also for compliance with legal and regulatory requirements that may govern such payments. Without a written agreement, there may be ambiguity about the payment details, which can lead to potential legal issues, particularly if questions about the payment arise in the future.

The other options highlight practices that lack the necessary clarity and accountability that a written agreement provides, emphasizing why proper documentation is the foundational element to ensure transparent and professional transactions in the real estate sector.

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