Broker Michael works for Cascade Realty in Kirkland. He has been showing homes to buyer couple, the Nguyens, for three weeks without a signed buyer-broker agreement. Under RCW 18.86, what is the nature of Michael's agency relationship with the Nguyens during this period?
Correct Answer
C) Michael may be treated as the Nguyens' agent based on their conduct, even without a written agreement
Under RCW 18.86, agency relationships can be created by conduct (implied agency) even without a written buyer-broker agreement. If Michael has been acting as the Nguyens' agent — showing homes, discussing their needs, and advocating for their interests — a court or the DOL could find that an agency relationship exists based on the parties' conduct. This is why Washington law requires the agency disclosure pamphlet at first substantive contact, to clarify the relationship early.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
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.
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