Implied agency is most likely created when:
Correct Answer
B) An agent consistently acts on behalf of a party without a written agreement
Implied agency arises from the conduct of the parties rather than from a written or express agreement. When a licensee consistently acts in ways that would lead a reasonable person to believe an agency relationship exists — such as advising a buyer, negotiating on their behalf, or sharing confidential information — implied agency may be established even without a signed contract. In Rhode Island, this is a significant concern because implied agency can create fiduciary duties and liability for the licensee without any formal agreement in place. Licensees should use written agency disclosure and agreements to avoid unintended implied agency relationships.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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.
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