New York Real Estate Salesperson ExaminationLaws of AgencyMedium
A real estate salesperson is assisting a buyer who is interested in a property. The salesperson provides the buyer with information about comparable sales in the area and helps them prepare an offer. However, the buyer has not signed any written agreement with the salesperson. What type of agency relationship, if any, exists between the salesperson and the buyer?
- ADesignated agency
- BImplied agency
- CExpress agency
- DNo agency relationship
Show answer & explanationAnswer & explanation
Correct answer: B. Implied agency
Implied agency can be created by the actions and conduct of the parties, even without a formal written agreement. The salesperson's actions of assisting the buyer and preparing an offer suggest an implied agency relationship.
Why the other options are wrong
- A. Designated agency occurs when a broker appoints one agent to represent the buyer and another to represent the seller in the same transaction, which is a specific type of express agency.
- C. Express agency requires a clear, explicit agreement, either written or verbal, which is not present here.
- D. The salesperson's actions go beyond merely assisting a customer and suggest a deeper level of representation.
Implied Agency
An agency relationship created by the actions and conduct of the parties, rather than by an express written or verbal agreement.
- Arises from behavior and circumstances.
- Can lead to unintended fiduciary duties.
- Often seen as risky due to lack of clarity.
Memory trick: Express is direct, Implied is inferred, Designated is divided, No agency is nil.