Which term describes a written or oral agreement between a sponsoring broker and a consumer regarding licensed activities?

The term that describes a written or oral agreement between a sponsoring broker and a consumer regarding licensed activities is a brokerage agreement. A brokerage agreement typically specifies the nature of the services to be provided by the broker, including the obligations and responsibilities of both the broker and the consumer. It establishes the professional relationship and outlines the terms of engagement, which may involve activities like buying, selling, leasing, or managing real estate.

This type of agreement is essential in real estate because it protects both parties' interests, ensuring that the broker acts in accordance with the agreed-upon terms, and the consumer understands the services they will receive. Additionally, such agreements often contain details regarding commission structures, the duration of the relationship, and any pertinent legal disclosures, further emphasizing the professional nature of the involvement.

In contrast, employment contracts specifically relate to the terms of employment for workers within a firm and do not encompass the broader scope of consumer-broker relationships seen in brokerage agreements. Partnership agreements involve two or more parties entering into a business partnership, which is a different arrangement entirely. Service contracts outline the provision of services but may not necessarily focus on licensed activities or the unique relationship between a broker and consumer.