Final answer:
A commission is the fee paid to a broker for their services, which is not the defining factor of an agency relationship. An agency relationship is based on the agreement for representation in dealings with third parties.
Step-by-step explanation:
The fee paid to a broker for rendering services is commonly referred to as a commission. This fee is compensation for the broker's efforts in executing a transaction or providing investment advice and is typically a percentage of the deal value or a flat fee.
However, it's important to note that a commission is not what defines an agency relationship; rather, the agency relationship is based on the agreement whereby one party, the agent, agrees to act on behalf of another, the principal, in dealings with third parties.