Agency
Which type of agency relationship is created when an agent acts on behalf of a client without explicit agreement but through the parties' conduct?
AExpress agency
BImplied agency✓ Correct
CRatified agency
DDesignated agency
Explanation
Implied agency is created through the conduct and actions of the parties rather than through a formal written or verbal agreement. Licensees must be careful not to inadvertently create an implied agency relationship.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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