How does express versus implied agency differ?

• A. Express agency is based on conduct; Implied arises from explicit terms
• B. Express agency is explicit; Implied arises from conduct
• C. Express agency cannot be terminated; Implied cannot be terminated
• D. Express requires court approval

Answer: (B)

Express agency is created by an explicit agreement between the client and the broker, usually in writing, that authorizes the broker to act on the client’s behalf and sets the scope and duration of that authority. Implied agency, on the other hand, arises from the parties’ conduct and surrounding circumstances rather than a formal agreement—what the broker does and how the client behaves can indicate that agency exists even without a written or oral contract. So the correct description is that express agency is explicit, while implied agency arises from conduct.