When does express agency exist?

Express agency exists when there is a clear, intentional agreement between the principal and the agent that outlines the agent’s authority to act on behalf of the principal. This agreement can be either written or oral. The key feature of express agency is that both parties understand and agree upon the relationship and the scope of the agency, which distinguishes it from other types of agency, such as implied agency where authority is inferred from actions rather than explicitly stated.

In express agency, the agreement specifies the responsibilities and expectations of the agent, which helps protect both the principal's interests and the agent's actions within the agreed-upon parameters. This clarity allows all parties involved to understand their roles in the relationship and is essential for effective real estate transactions.