Which situation BEST describes implied agency?
Correct Answer
B) A broker consistently shows homes and negotiates offers for a buyer without a written agreement
Implied agency arises from the conduct of the parties rather than a written or express agreement. In Iowa, when a broker consistently acts on behalf of a buyer — such as showing properties, drafting offers, and negotiating terms — an implied agency relationship can be created even without a signed buyer-broker agreement. Iowa Code Chapter 543B governs agency relationships, and agents must be careful that their conduct does not unintentionally create an agency relationship they have not disclosed.
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