In real estate, Implied Agency is an agency relationship that is not formally or expressly stated but is inferred from the actions, conduct, or circumstances of the parties involved. It arises when behavior indicates that one party is acting on behalf of another and that authority has been granted, even without a written or verbal agreement.
Implied agency can create the same fiduciary duties as an express agency relationship, including loyalty, disclosure, and care. Because it can lead to unintended legal obligations, real estate professionals must be cautious to clearly define their relationships to avoid accidental creation of an implied agency.
