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 the conduct of both parties demonstrates a mutual intent to create an agency relationship beyond the initial verbal statement

An implied agency arises from the conduct and actions of both parties, not from an explicit oral or written agreement. While the buyer made a verbal statement, that statement alone is an informal request — not a deliberate, clear appointment of an agent. What creates the agency here is the combination of the buyer's ongoing conduct (allowing the agent to show properties and negotiate) and the agent's responsive conduct (acting on the buyer's behalf). California courts look to the totality of conduct to determine implied agency, and the mutual behavior of both parties — not the initial verbal remark — is the operative legal basis.