As a real estate agent, entering into a listing agreement with a seller is a common practice. But have you ever wondered if you have the authority to do so? This is where implied authority comes into play.
Implied authority is the authority that is not expressly granted but is necessary to carry out an agent`s duties. In the case of a real estate agent, implied authority comes from the agent`s position as an agent and the customs and practices of the real estate industry.
A listing agreement is a contract between a real estate agent and a seller that outlines the terms and conditions of the sale of a property. This agreement gives the agent the authority to act on behalf of the seller in marketing and selling their property. However, this authority is not explicitly stated in the agreement.
The authority is implied because it is necessary for the agent to carry out their duties as an agent. Without the authority to market and sell the property, the agent would be unable to fulfill their obligation to the seller.
Implied authority is not limited to listing agreements. It also applies to other real estate activities such as writing contracts, negotiating deals, and showing properties. As an agent, you have the implied authority to perform these activities because they are necessary to carry out your duties.
It is important to note that implied authority is not unlimited. Agents must act within the scope of their authority, and any actions outside of this scope may result in legal consequences. Therefore, it is essential for agents to have a thorough understanding of their implied authority and the limitations that come with it.
In conclusion, a listing agreement is an example of implied authority in the real estate industry. This authority is necessary for agents to carry out their duties and fulfill their obligations to their clients. Understanding implied authority is crucial for agents to avoid legal issues and provide the best service to their clients.
