New Jersey Real Estate Exam Practice Question

A real estate salesperson legally represents the party who has:

Correct Answer: B

Rationale: In real estate, legal representation is established through an agency agreement. Option B is accurate because it highlights the necessity of a formal agreement between the party and the broker, which creates a legal relationship.

Option A is incorrect; merely paying a commission does not establish representation without an agreement.

Option C suggests that a direct agreement with the salesperson suffices, but representation must be through the broker to be legally binding.

Option D is misleading; personal contact alone does not create an agency relationship without a formal agreement.

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