New York Real Estate Salesperson ExaminationLaws of AgencyMedium
A real estate salesperson is working with a buyer who has verbally agreed to be represented by the salesperson. The salesperson has shown the buyer several properties and provided market analysis. However, they have not signed a written buyer agency agreement. Under New York law, what is the status of this verbal agreement?
- AIt is a valid and enforceable express agency agreement.
- BIt is an implied agency agreement, but not legally enforceable.
- CIt is a valid agency agreement, but only for the specific properties shown.
- DIt is not a legally recognized agency relationship without a written agreement.
Show answer & explanationAnswer & explanation
Correct answer: A. It is a valid and enforceable express agency agreement.
In New York, agency agreements, including buyer agency, can be created verbally. While a written agreement is highly recommended for clarity and enforceability, a verbal agreement, if proven by the actions and words of the parties, can establish an express agency relationship.
Why the other options are wrong
- B. It is an express agency (verbally agreed), not implied, and it can be legally enforceable if proven.
- C. The scope of the verbal agreement would depend on the terms agreed upon, but the core issue is the validity of the verbal agreement itself, which is recognized.
- D. This is incorrect for New York law, which allows for verbal agency agreements, though written is preferred.
Verbal Agency Agreement (NY)
In New York, an agency relationship can be established through a verbal agreement, although a written agreement is strongly advised for legal clarity and protection.
- Verbal agreements are legally recognized.
- Proof of agreement can be challenging.
- Written agreements prevent misunderstandings.
Memory trick: Express is said or written, Implied is shown, Ratified is approved, Estoppel's known.