A buyer verbally says to an agent, 'I want you to find me a house.' The agent begins showing properties and negotiating offers on the buyer's behalf, but no written agency agreement is signed. Under California law, what type of agency has most likely been created?
Correct Answer
C) An implied agency, because what the two of them actually did shows a mutual intent to create one
Words opened the relationship, but conduct is what makes it an implied agency: the agent showing property and negotiating offers, and the buyer accepting that service, together show a mutual intent to create an agency. An express agency requires a deliberate appointment rather than a passing remark, and an ostensible agency is about what third parties are led to believe rather than what these two did between themselves. Note the compliance side as well. Since January 1, 2025, Civil Code § 1670.50 has required a buyer's agent to execute a written buyer-broker representation agreement with the buyer as soon as practicable and no later than the execution of the buyer's offer to purchase, so writing offers with nothing signed is now a violation in its own right - it simply does not prevent an agency from having formed by conduct.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
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