Implied agency
National Real Estate Exam glossary · Agency
Definition
An agency relationship created not by an express agreement but by the conduct of the parties, where one acts on another's behalf and that other accepts the benefit. Because it carries the same fiduciary duties as express agency, an agent can incur full obligations to a party simply by behaving as that party's representative—a frequent and costly trap.
Implied agency in plain English
Normally you become someone's real-estate agent by signing a contract, but 'implied agency' means you can slip into that role by ACCIDENT — just by acting like their agent while they happily let you. If you start giving a buyer inside advice, negotiating for them, and treating them like your client, the law may decide you really ARE their agent even though nobody signed anything. That matters a ton, because it dumps the full set of loyalty-and-honesty duties (called fiduciary duties) on your shoulders. It's like feeding a stray cat every day: keep it up and it's basically your pet with all the responsibility, whether or not you ever meant to adopt it — a classic, expensive trap for agents.
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