How is implied agency most commonly created?
Correct Answer
B) By consistently acting on behalf of a party without a written agreement
Implied agency arises when an agent's conduct reasonably leads a party to believe an agency relationship exists, even without a written agreement. For example, if a licensee consistently provides advice, negotiates, or acts in a party's interest without a formal agreement, an implied agency may be established. This creates significant risk for Delaware licensees because Delaware's agency disclosure law requires written disclosure of agency relationships. An undisclosed or implied agency can expose the licensee to disciplinary action by the Delaware Real Estate Commission.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
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.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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