An implied agency is created by?

Study for the California Real Estate Broker Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Prepare efficiently and effectively for your licensing exam!

Implied agency is established through the actions and behavior of the parties involved rather than through formal agreements or written consent. This means that if one party acts in a way that suggests they are representing another party, an implied agency can arise even without a verbal or written agreement specifically stating that relationship.

For instance, if a property owner consistently allows a real estate agent to show their home and negotiate offers without a formal contract, the actions of both parties can signify that an agency relationship exists. This is particularly relevant in real estate transactions where informal arrangements often lead to implied roles in the absence of explicit agreements.

In contrast, written consent or specific terms of an agreement are indicative of express agency, where the responsibilities and nature of the relationship are clearly outlined. Similarly, disclosure of the agency relationship typically pertains to compliance requirements to inform all parties involved, but does not by itself create an agency relationship. Therefore, the nature of implied agency emphasizes understanding relationships through conduct rather than formal documentation.

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