What must be proven to establish an implied agency relationship?

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!

To establish an implied agency relationship, it must be demonstrated through clear actions that indicate the existence of an agency. Implied agency arises when one party's conduct leads another to reasonably believe that the first party has the authority to act on their behalf, even without a formal written agreement. This can occur through actions, words, or a series of interactions that suggest a mutual understanding or intention to create an agency relationship.

For example, if a property owner consistently allows a real estate agent to show their property and negotiate on their behalf without a formal contract, those actions can imply that the agent has the authority to act as the owner's representative, thereby establishing an implied agency relationship.

Written consent is not a requirement for an implied agency because such relationships are often based on conduct rather than formal agreements. A shared ownership or advance payment for commission does not factor into the establishment of an implied agency, as those conditions do not directly demonstrate a mutual understanding or intention to engage in an agency relationship.

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