New York State Real Estate Salesperson Licensing Exam

Which document outlines the agency relationship for a salesperson?

1. Listing agreement

2. Agency disclosure form

3. Purchase agreement

4. Client representation agreement

The correct answer is: Agency disclosure form

The agency disclosure form is the document that outlines the agency relationship for a salesperson. It serves an essential purpose in real estate transactions by clarifying the relationship between the real estate agent and the client. This form is key in the state of New York, as it ensures that clients and potential clients understand how their interests will be represented by the agent, whether as a buyer's agent, seller's agent, or in a dual agency situation. This form not only informs clients about their rights but also allows them to acknowledge the nature of the relationship they are entering into with the agent. The importance of this form lies in its role in maintaining transparency, which is a fundamental principle in real estate practice to promote trust and ethical conduct. While other documents mentioned may involve agency relationships, they do so in different ways. The listing agreement is specific to the seller’s interests and details the terms of representation for selling a property. The purchase agreement outlines the terms between a buyer and seller for a specific transaction but does not establish the agency itself. The client representation agreement usually refers to agreements that further define the scope of services provided by the agent to the client but may not serve as the formal disclosure of the agency relationship.