What type of agency is created when a buyer and broker formulate a written agreement?

When a buyer and broker enter into a written agreement, they establish an express agency. This type of agency is explicitly defined through a formal written contract that outlines the specific terms and conditions of the relationship, including the rights and responsibilities of both parties. Express agency is characterized by a clear intention and mutual agreement to enter into an agency relationship, indicated by the formal documentation.

In contrast, implied agency arises from the actions and conduct of the parties involved, rather than from a written agreement. General agency refers to a broader authority where an agent is empowered to make decisions on behalf of a principal in various areas, while special agency limits the agent’s authority to a specific task or transaction. Since a written agreement directly articulates the agency relationship, express agency is the appropriate term to describe this situation.