New Jersey Real Estate Practice Exam Practice Question

An agency relationship is established between the broker and

Correct Answer: B

Rationale: An agency relationship is fundamentally established between the broker and the principal, who is the party that engages the broker to act on their behalf in a transaction. This relationship is characterized by trust, responsibility, and fiduciary duties.

Option A is incorrect as another broker does not create an agency relationship; they may collaborate but do not represent each other. Option C is also wrong; a multiple listing service (MLS) is a tool used by brokers to share listings, not a party in an agency relationship. Option D misrepresents the relationship; a customer is typically a party to a transaction but does not establish an agency relationship with the broker.

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