What does "implied agency" refer to in real estate transactions?

Implied agency refers to a situation where an agent operates under the assumption that they have the authority to act on behalf of a client, even in the absence of a formal or written agreement. This often occurs through the actions or conduct of the parties involved, where the client’s behavior suggests they have accepted the agent's role and responsibilities.

In real estate transactions, this can manifest in various ways, such as a buyer acting as if they are being represented by a specific agent without having signed a contract. The agent may not have a formal appointment, yet their actions may indicate an understanding or expectation that they are representing the client. This concept underscores the importance of clear communication and documentation in establishing agency relationships, as it is possible for misunderstandings to arise if an implied relationship is assumed without explicit consent or agreement.

In contrast, the other options describe more formal arrangements involving a clear contract or written agreement, which do not align with the characteristics of implied agency.