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In this video tutorial, Joe from Prep Agent discusses the formation of agency relationships in real estate, which are crucial for the licensing exam and practical application in the field. He emphasizes that while the methods for establishing these relationships are generally universal, it's important to check state-specific laws for recognition or restrictions. The primary method outlined is the Express Agreement, where an agency relationship is formed through explicit communication, either orally or in writing. The enforceability of oral agreements may vary by state, and standard written agreements include listing agreements or buyer’s agents. Understanding these concepts is vital for new real estate practitioners.