California Real Estate Practice Exam

When the actions of a buyer and seller seem to indicate that the seller will pay a broker a commission for selling her house but no agreement has been discussed or signed, the type of agreement they have is a(n)?

1. Express agreement

2. Implied agreement

3. Written agreement

4. Non-existent agreement

The correct answer is: Implied agreement

An express agreement is one that has been explicitly stated and agreed upon by both parties, while a written agreement is one that is recorded in writing. These two options are incorrect because there has been no discussion or documentation of an agreement in this scenario. Similarly, a non-existent agreement is incorrect because there is a clear indication of an agreement through the actions of the buyer and seller, even without a formal discussion or signing. An implied agreement, on the other hand, is an agreement that is suggested or inferred from the circumstances and behavior of the parties involved. In this scenario, the buyer and seller's actions indicate an agreement to pay a broker's commission, even though they have not explicitly discussed or signed any agreement. Therefore, the correct answer is B Implied agreement.