Nevada salesperson Elena has been working with buyer clients, the Robinsons, under an oral representation agreement for three months. The Robinsons are now ready to make an offer on a property. Under Nevada law, what is the status of Elena's agency relationship with the Robinsons at this point?
Correct Answer
C) The oral agreement may have created an implied agency through conduct, but a written agreement is required before submitting an offer
Under Nevada law, while the statute of frauds (NRS 111.210) requires certain real estate contracts to be in writing, an agency relationship can be created by implication through conduct even without a written agreement. However, NAC 645 regulations and best practices in Nevada strongly require written representation agreements before submitting offers. The three months of working together may have created an implied agency, but a written agreement should be in place before proceeding to the offer stage to properly define the relationship and protect all parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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