AgencyIntermediateDelaware Exam

What is an 'implied agency' in Delaware real estate?

ASimply an ordinary agency relationship created through a formal written agreement signed in advance by both parties
BAn agency relationship created by the conduct and actions of the parties rather than a written agreementCorrect
CA government-regulated agency agreement for first-time homebuyers
DAn agency relationship created by court order

Why An agency relationship created by the conduct and actions of the parties rather than a written agreement Is Correct

Answer B: An agency relationship created by the conduct and actions of the parties rather than a written agreement

Implied agency arises from the conduct and actions of the parties — even without a written agreement — when an agent acts on behalf of a person and that person relies on the agent's representation. Delaware licensees should be careful that their conduct does not inadvertently create implied agency relationships.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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