Final answer:
False.A formal agency relationship is not necessary for a broker to show properties to a buyer, but it becomes important when formal representation and negotiation on the buyer's behalf are needed.
Step-by-step explanation:
An agency relationship need not be formally established for a broker to show properties to a buyer. A broker can introduce buyers to various properties as part of the initial service offering without a formal agreement. However, an agency agreement is crucial when the buyer decides to engage the services of the broker to act on their behalf, providing legal authorization for the broker to negotiate and act in the interest of the buyer. This clarifies expectations and responsibilities and can protect both parties in legal and financial contexts.