New Jersey Real Estate Exam Practice Question
Sellers with an existing buyer approach a licensee to create a contract. After a salesperson explains the services to be provided, the sellers sign a listing agreement with the salesperson's realty company and broker. The salesperson also signs the listing form. As a result, an agency relationship is established between or among the
Correct Answer: D
Rationale: An agency relationship is established when a principal (sellers) grants authority to an agent (broker) to act on their behalf. In this scenario, the sellers sign a listing agreement with the brokerage, thereby creating an agency relationship between the sellers and the broker.
Option A is incorrect because, while the salesperson is involved, the agency is formally with the broker. Option B is wrong as the buyer is not part of this agency relationship; the focus is solely on the sellers and the broker. Option C is misleading; although the salesperson signs the listing, the agency exists primarily between the broker and the sellers, not just the salesperson.
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