In South Dakota, when does an agency relationship typically begin?
Correct Answer
B) When a written agreement is signed by the parties
A formal agency relationship typically begins when a written agreement (such as a listing agreement or buyer representation agreement) is signed by the parties. While implied agency can occur through conduct, the best practice is to establish agency through a written agreement.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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