What is the only requirement for establishing an agency relationship?

The establishment of an agency relationship fundamentally relies on a consensual agreement between the principal and the agent. This means that both parties must agree to the terms of the relationship and acknowledge the agent's authority to act on behalf of the principal. While a written agreement is often preferable for clarity and legal protection, it is not strictly necessary for establishing the agency relationship, especially in less formal contexts or where verbal agreements are accepted. Therefore, the emphasis on consent highlights that the relationship can exist in various forms, including oral agreements or implied consent, as long as there is mutual agreement to form the relationship. Understanding this principle is crucial, as it underscores the importance of transparency and agreement in any professional real estate interaction.