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AgencyAgency_types_and_creationHARD

Salesperson Carla in Nebraska regularly assists buyers by showing homes, drafting offers, and negotiating on their behalf, but she never asks them to sign a buyer representation agreement. After several transactions, a buyer named Ron claims Carla was his agent and sues her brokerage for breach of fiduciary duty. Under Nebraska law, which of the following is most likely to be true?

Correct Answer

B) Ron may prevail based on implied agency arising from Carla's consistent conduct of representing his interests

Under Nebraska agency law, implied agency can be created through the consistent conduct of a licensee, even without a written agreement. Carla's pattern of showing homes, drafting offers, and negotiating on Ron's behalf constitutes conduct that would reasonably lead Ron to believe he was Carla's client and that she was acting in his best interests. Nebraska courts recognize implied agency arising from conduct, and the brokerage (through Carla's actions) could be held to fiduciary duties owed to Ron. This scenario illustrates why Nebraska licensees are strongly advised to use written buyer representation agreements — to clearly define the relationship and avoid implied agency claims.

Answer Options
A
Ron cannot prevail because no written buyer representation agreement was signed, so no agency existed
B
Ron may prevail based on implied agency arising from Carla's consistent conduct of representing his interests
C
Ron cannot prevail because Carla is a salesperson and cannot legally be held to fiduciary duties
D
Ron may prevail only if the transactions involved properties listed by Carla's brokerage firm

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Related Topics & Key Terms

Key Terms:

implied_agencyfiduciary_dutybuyer_representationwritten_agreementagency_creation

Related Concepts

A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.

A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.

A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.

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