California Real Estate Practice Exam

All agency agreements for the sale of property must be in writing except

1. Creation by estoppel

2. Creation by implication

3. There are no exceptions

4. Creation by ratification

The correct answer is: There are no exceptions

This answer is incorrect because there is one exception to the rule that all agency agreements must be in writing for the sale of property. The exception is creation by estoppel, which means that even without a written agreement, if the parties have acted as if there was an agency agreement in place, it can be legally recognized. This exception is meant to protect parties who have already taken actions based on an implied agreement, rather than requiring a written document in hindsight. Creation by implication, on the other hand, refers to an agency agreement that is implied through the actions and behavior of the parties, but it still must be in writing to be legally valid. Creation by ratification also requires a written document to be valid, as it refers to the acceptance and affirmation of an existing agency relationship. Therefore, the correct answer is not "there are no exceptions," as that is not true.