What is the main difference between "implied" and "express" agency in real estate?

The correct answer highlights the distinct nature of implied and express agency in real estate, emphasizing how each is established. Implied agency refers to a situation where an agency relationship is formed based on the actions, behavior, or conduct of the parties involved, rather than a formal agreement. For instance, if a broker consistently acts on behalf of a buyer and both parties conduct themselves in a way that suggests an understanding of that relationship, an implied agency can be established without any verbal or written agreement.

In contrast, express agency is characterized by a clear and explicit statement—either oral or written—where one party authorizes another to act on their behalf. This could involve a formal contract that outlines the responsibilities and expectations of the agent. The key here is the explicit acknowledgment of the agency relationship, which is absent in implied agency.

Understanding this difference is crucial for professionals in the real estate industry, as it affects the legal responsibilities and liabilities of agents in their dealings with clients. Concepts like client representation, fiduciary duty, and the legal implications of agency relationships rely heavily on whether the agency is implied or express.