Unless a written agreement states otherwise, what type of agency is presumed to exist when a licensee is engaged in a real estate transaction?

In real estate transactions, the presumption of implicit agency is generally established unless a different type of agency is expressly outlined in a written agreement. This means that when a licensee is involved in a real estate transaction, it is automatically assumed that they have a fiduciary responsibility to the client, reflecting the duty of care, loyalty, and full disclosure. Implicit agency can form through the actions and conduct of the parties involved, indicating a mutual understanding of the relationship without the necessity of a formal contract.

Designated agency, exclusive agency, and dual agency involve specific arrangements that require a written agreement to define the roles and responsibilities of the licensee in relation to their clients. For instance, designated agency clearly assigns representation to one party, while dual agency involves the licensee representing both the buyer and the seller in the same transaction, which may create potential conflicts of interest. Exclusive agency confers particular rights regarding the commission and representation. Unless otherwise specified in a written agreement, the default is the presumption of an implicit agency relationship based on the interactions between the parties.