The primary relationship formalized by an agency agreement is between the buyer and which party?

• A. Seller and listing agent.
• B. Buyer and buyer's agent.
• C. Buyer and seller.
• D. Lender and borrower.

Answer: (B)

Agency agreements create a contract that authorizes someone to act on behalf of another person in real estate dealings. For a buyer, the agreement with the broker designates the broker as the buyer’s agent, giving them authority to represent the buyer, negotiate, and handle duties like loyalty, confidentiality, and disclosure throughout the purchase process. This is the primary relationship established by the buyer’s agency agreement. The seller’s side is governed by a separate listing agreement between the seller and the listing agent, not by the buyer’s agreement. Financing with a lender is a separate, non-agency relationship. So the key relationship formed by an agency agreement is between the buyer and the buyer’s agent.