Which statement best describes the relationship between a broker and a client?

The statement indicating that the relationship between a broker and a client is a legally defined agreement with specific obligations is correct because it reflects the formal nature of the fiduciary relationship established in real estate transactions. Brokers have a legal duty to act in the best interest of their clients, known as fiduciary duties, which include loyalty, confidentiality, and full disclosure.

These obligations are codified in real estate law and require brokers to adhere to ethical standards while representing their clients. This legal framework ensures that clients can rely on their brokers to provide proper guidance, protect their interests during transactions, and uphold the terms outlined in the brokerage agreement. Such structured relationships help build trust and accountability, essential components in real estate dealings.

In contrast, other options fail to capture this formal and responsible nature of the broker-client relationship, which is critical to successful and ethical real estate practices.