Which situation best illustrates the creation of an implied agency relationship?
Correct Answer
B) An agent consistently shows homes, offers negotiating advice, and advocates for a buyer without a written agreement
Implied agency is created by the conduct of the parties rather than by a written or express agreement. In Alaska, if a licensee consistently acts on behalf of a buyer — such as showing properties, providing negotiating advice, and advocating for the buyer's interests — an agency relationship may be implied even without a signed buyer representation agreement. This is why Alaska, like most states, encourages written agency agreements to avoid unintended implied agency obligations.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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.
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