Affiliate Broker Tennessee (TN PSI) National Practice Exam 2026 - Free Affiliate Broker Practice Questions and Study Guide

Implied agency occurs when the consent of one party is assumed rather than explicitly stated. This type of agency can arise from the actions or behavior of the parties involved, indicating that one party intends to act on behalf of another even if they haven't formally agreed to it in writing or verbally. For instance, if a buyer interacts with a real estate agent and acts in a manner demonstrating they expect the agent to represent them, an implied agency relationship might be established based on those actions.

In contrast, express agency involves a clear agreement between parties, typically documented in writing. Universal agency grants a broad scope of authority across all areas, while designated agency allows specific agents to represent a client within the same brokerage. Implied agency is unique because it doesn’t require formal consent—rather, it is inferred from the situation or conduct of the parties.