What defines the relationship between a broker and a potential buyer who is not represented?

The correct choice is that there is no agency relationship between a broker and a potential buyer who is not represented. In real estate, an agency relationship typically occurs when a broker enters into a formal agreement with a client to represent their interests. This means there is a clear understanding of duties and obligations, such as loyalty, confidentiality, and disclosure.

When a buyer is not represented by a broker, it indicates that the broker does not owe the buyer any fiduciary obligations. The broker's primary duty is to their client, typically the seller in a listing agreement, and they are not obligated to act in the best interest of the unrepresented buyer. Thus, the potential buyer is considered a customer rather than a client, which means they can receive information and assistance but without the legal benefits and protections that come with a client relationship.

This lack of agency relationship reinforces the importance of a buyer understanding the dynamics of representation in real estate transactions, including the different roles and responsibilities in these interactions.