North Dakota Real Estate Practice Exam

What is the term for a person who has entered into a written agency agreement with a real estate brokerage firm?

1. Client

2. Customer

3. Licensor

4. Brokerage Associate

The correct answer is: Client

The term used to describe a person who has entered into a written agency agreement with a real estate brokerage firm is "Client". In the context of real estate, a client is someone who has formally engaged the services of a real estate professional or brokerage through a signed agreement, thereby establishing a fiduciary relationship. This relationship requires the agent to act in the best interests of the client, providing guidance, advocacy, and support throughout the real estate transaction process. The distinction between a client and other terms like customer or brokerage associate is significant. A customer may seek services or information but does not have a formal agency relationship with the brokerage, thus lacking the same level of legal obligations or protections. Similarly, a brokerage associate refers to a licensed professional working under the umbrella of a brokerage but does not denote the individual's agency status in relation to clients. Lastly, licensor typically pertains to a party granting a license or permission, which is not applicable in this context. Thus, "Client" is the correct term for an individual who has formally engaged in a written agreement with a real estate brokerage.