What type of partnership is formed between brokers when one broker commits fraud while sharing office space?

The correct choice is indeed ostensible partnership. An ostensible partnership, also known as a partnership by estoppel, occurs when two or more parties appear to be partners to third parties, even if they do not have a formal partnership agreement. In the scenario presented, one broker committing fraud while sharing office space with another can create the appearance that both brokers are jointly responsible for the actions of one. This can lead to third parties believing that both brokers are partners, even if there is no official partnership agreement in place.

In real estate, this is particularly significant because the actions of one broker can affect the reputation and liability of the other. If fraud is committed in a shared office setting, the impacted parties may assume that both brokers are jointly liable due to their proximity and collaboration in a business environment. Understanding the nuances of ostensible partnerships helps brokers navigate potential liabilities and manage their professional relationships more effectively.