New Jersey Real Estate Practice Exam Free 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 formed when one party acts on behalf of another in a transaction. In this scenario, the sellers sign a listing agreement with the salesperson's brokerage, establishing the broker as their agent. This means the broker represents the sellers' interests in the transaction.
Option A is incorrect because while the salesperson interacts with the sellers, the formal agency relationship is with the broker. Option B is misleading; the buyer is not part of the agency relationship established by the listing agreement. Option C is also incorrect; while the salesperson and broker have a working relationship, the agency is specifically between the broker and the sellers, not the salesperson alone.
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