When is an implied agency typically established?

An implied agency is typically established through actions and behaviors, reflecting the nature of the relationship between the parties involved. In real estate, this can occur when a buyer or seller behaves in a way that demonstrates that they are relying on a professional to act on their behalf, even if there is no formal agreement. This relationship might be inferred from the conduct of the parties, such as when a real estate agent provides advice or assistance that leads one party to believe they are acting as their agent.

This concept is important because it underscores the reality that agency relationships can exist even without explicit contracts. In scenarios where one party acts under the assumption that they are represented, an implied agency can create obligations and duties that the agent must fulfill, even if those obligations were not formally agreed upon. Thus, a clear understanding of implied agency is critical in real estate transactions to ensure that both agents and clients are aware of their rights and responsibilities.