New Jersey Real Estate License Exam Practice Question
An agency relationship is established between the broker and
Correct Answer: B
Rationale: An agency relationship is fundamentally based on the agreement between a broker and the principal, who is the party that hires the broker to act on their behalf in a transaction. This relationship is characterized by trust and fiduciary duties.
Option A, another broker, does not establish an agency relationship as brokers typically work independently or in collaboration rather than as agents for one another.
Option C, a multiple listing service (MLS), serves as a tool for brokers to share listings but does not create an agency relationship.
Option D, a customer, is not the principal; rather, they are typically the party receiving services from the broker, thus lacking the authority that defines the agency relationship.
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