What is implied agency?

Implied agency arises when actions, behaviors, or communications between the parties suggest an agency relationship, even if there is no formal agreement or written contract to establish it. This type of agency is based on the understanding and assumption that one party acts on behalf of another, and the other party perceives this arrangement.

In many cases, implied agency can occur in real estate transactions where an agent’s interactions and representations lead a consumer to reasonably believe that the agent is representing them, even without an explicit or formal agreement. The key factor is the expectation created by the agent's actions, which makes the consumer feel as though they are being represented.

Understanding implied agency is essential in real estate, as it can have significant implications for duties, responsibilities, and potential liabilities that arise without a formal contract in place.