Which of the following describes the 'agency relationship' in real estate?

The agency relationship in real estate is best described as the legal relationship in which a real estate agent represents a client. This relationship is fundamental to the practice of real estate as it establishes the responsibilities and obligations of the agent towards the client. Under this relationship, the agent acts on behalf of the client, providing services related to buying, selling, or leasing property while adhering to fiduciary duties such as loyalty, confidentiality, and full disclosure.

In this context, the agent is empowered to make decisions and take actions that are in the best interest of the client, thereby ensuring proper representation and guidance throughout the real estate transaction process. This legal framework is crucial because it helps to clarify rights and responsibilities, ultimately fostering trust between the agent and the client.

The other options do not accurately reflect the agency relationship. A lease between the owner and a tenant pertains to tenancy agreements, not representation. An agreement between a buyer and a seller relates to purchase contracts but does not necessarily involve an agency relationship unless an agent is representing one or both parties. A partnership between multiple agents refers to their collaboration rather than the agent-client dynamic, which is central to the concept of agency.