New Jersey Real Estate Practice Exam Free Practice Question
In a jurisdiction where the common law of agency prevails, a buyer enters into a buyer agency agreement with a real estate licensee. This agreement establishes a
Correct Answer: C
Rationale: A buyer agency agreement establishes a fiduciary relationship, where the real estate licensee owes the buyer loyalty, confidentiality, and full disclosure. This relationship is built on trust and requires the agent to act in the best interests of the buyer.
Option A, dual agency, occurs when an agent represents both the buyer and seller, which is not the case here. Option B, sub-agency, involves an agent representing another agent's client, which does not apply in a direct buyer-agent scenario. Option D, customer relationship, lacks the fiduciary duties inherent in a buyer agency agreement, making it an inadequate description of the relationship.
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