California Real Estate Practice Exam

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How is an implied agency created?

Through written agreement
By the actions of the parties
By state law
Automatically upon property listing

The correct answer is: By the actions of the parties

An implied agency is created when the actions of both parties involved imply that there is an agency relationship between them. This means that, through their conduct, they are acting as if one is representing the other in some capacity. Options A and D are incorrect because they specifically mention written agreement or automatic creation, rather than implying through actions. Option C, while it could potentially play a role in certain situations, is not the main way that an implied agency is created. Therefore, the best answer is B, as it captures the core concept of an implied agency being created through the actions of the parties involved.