Oregon 30-Hour Real Estate Law Practice Test

What action could lead to Nevina creating an implied agency agreement?

1. Giving general property advice to friends

2. Performing a CMA and providing pricing advice

3. Listing a property without a contract

4. Referring a seller to another agent

The correct answer is: Performing a CMA and providing pricing advice

An implied agency agreement can be established through the actions and communications between parties, indicating an understanding of a relationship without formal documentation. When Nevina performs a Comparative Market Analysis (CMA) and provides pricing advice, this act can create an expectation of professional representation. In real estate, if an agent gives detailed advice or analysis regarding property pricing, it can signal to the client that they are acting in a representational capacity. This can lead to the belief that the agent has taken on a role that carries obligations typical of an agency relationship, such as loyalty and disclosure. The recipient of this advice may start to feel that they can rely on Nevina's expertise for representation, thus forming an implied agreement. The other options either lack the necessary intent or fail to engage significantly with the client to generate an implied relationship. Simply giving advice to friends is too casual and doesn't convey professional agency. Listing a property without a contract may not establish a legal relationship without mutual consent or understanding. Referring a seller to another agent does not create an implied agency since it doesn’t indicate that the referring party is assuming an agency role. Therefore, choosing to conduct a CMA and provide pricing advice is the action most aligned with instigating an implied agency relationship.