Texas Real Estate State Practice Exam

Implied agency refers to an agency relationship established through the actions or conduct of the parties involved, rather than through an explicit written or verbal agreement. In real estate, this often occurs when one party acts in a manner that leads another party to reasonably believe that an agency relationship exists. For instance, if a real estate agent continually provides advice and guidance to a client, they may be creating an implied agency relationship, even if a formal agreement has not been executed. This concept is crucial in real estate transactions because it emphasizes the importance of behavior in establishing relationships and responsibilities.

In contrast, agency relationships that are formed through written contracts or strictly verbal agreements do not fall under the implied category, as they require explicit acknowledgment and agreement of terms. Similarly, while having multiple agents can create various agency scenarios, it does not pertain to the definition of implied agency, which focuses on the unspoken understanding between parties based on their interactions and real estate practices.