Implied agency arises from which of the following?

Implied agency arises from the behavior of the parties involved in a real estate transaction rather than from formal agreements or regulations. This type of agency is established through actions, conduct, or circumstances that suggest a mutual understanding and agreement about the agency relationship, even if there is no explicit written contract.

For instance, if a buyer and seller behave in a way that demonstrates trust and reliance on each other's actions—such as communicating with one another, sharing important information, or behaving in a manner consistent with an agent-client relationship—it can create an implied agency. This often happens in situations where one party acts with the expectation that they are receiving advice or representation from the other, leading to the presumption of an agency relationship being formed.

Understanding implied agency is important, as it highlights the way relationships can develop in real estate transactions, sometimes leading to legal obligations even without a formal agreement in place.