What is required for a valid management agreement between a broker and a community association?

A valid management agreement between a broker and a community association requires that the broker's compensation terms are included. This is essential because the compensation structure defines the relationship and expectations between the broker and the community association. It helps to ensure transparency, clarity, and legal enforceability of the agreement. By specifying the terms of compensation, both parties can avoid misunderstandings and potential disputes in the future regarding payment for services rendered.

Other options such as relying solely on verbal agreements are inadequate, as written agreements provide a formal record that minimizes ambiguity and ensures that all terms are acknowledged by both parties. It's also necessary for both parties to sign the agreement for it to be valid and enforceable, meaning that a signature by only one party would lack the mutual consent required to establish a legally binding contract. Lastly, specifying the community association in the agreement is crucial because it identifies the entity for which the broker will be managing services, ensuring that responsibilities and expectations are clearly defined.