What is another term for implied agency?

Implied agency is also known as ostensible agency. This concept arises when the actions or conduct of one party lead another party to reasonably believe that an agency relationship exists, even if there is no formal, written agreement. In real estate, this can occur when a buyer or seller acts as though a broker is representing them based on previous dealings or the broker's behavior.

For example, if a broker takes actions that indicate they are working on behalf of a buyer or seller, and that party believes they are being represented, an implied agency is formed, even in the absence of explicit agreement. This highlights the importance of clear communication and documentation in professional relationships to avoid misunderstandings.

The other terms listed are distinct concepts in agency relationships. Express agency involves a written or verbal agreement where the agency relationship is explicitly defined. Exclusive agency refers to a specific type of listing agreement that allows the seller to retain the right to sell the property themselves without paying a commission to the agent, while limited agency typically pertains to representing both the buyer and seller in a transaction with certain limitations. Understanding these distinctions is crucial for anyone involved in real estate transactions.