Listing broker gave negotiation advice to prospective buyer at open house without discussing agency. What agency type formed?
Correct Answer
A) Implied agency
When the listing broker gave negotiation advice to the prospective buyer without disclosing agency relationships, the broker's conduct created an implied agency relationship with the buyer through action rather than agreement, which is the very definition of implied agency under California Civil Code §2295. California's Agency Disclosure Law (Civil Code §2079.13–2079.24) requires brokers to disclose agency relationships at the earliest practicable opportunity, and failure to do so while still acting in an advisory capacity does not eliminate the agency — it merely makes it implied rather than express.
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