Question 33

An agency relationship is established between the broker and the sellers.

In this scenario, the agency relationship is specifically formed between the broker and the sellers once the sellers sign the listing agreement. The broker is the one representing the sellers through the salesperson.

A) salesperson and the sellers.

This option is incorrect because the agency relationship is not directly between the salesperson and the sellers. While the salesperson facilitates the transaction, the formal relationship is established through the broker after the listing agreement is signed.

B) buyer, the salesperson, and the sellers.

This option is incorrect as it suggests an agency relationship involving the buyer, which is not established in this context. The focus is on the relationship formed between the sellers and the broker, not involving the buyer in this specific agreement.

C) salesperson and the broker.

This option is also incorrect because, although the salesperson may work under the broker, the agency relationship in question pertains to the brokers' representation of the sellers, not a direct relationship between the salesperson and the broker.

D) broker and the sellers.

This option is correct as it accurately reflects the agency relationship formed when the sellers sign the listing agreement with the broker's realty company. The broker is the entity that legally represents the sellers in the transaction.

Conclusion

The correct answer is D, as the agency relationship is established between the broker and the sellers upon signing the listing agreement. Options A, B, and C fail to recognize this critical relationship, which is central to the functioning of real estate transactions and agency law.