Final answer:
Converting an implied agency to an express agency involves creating a formal written agreement signed by both the broker and the client, which clearly delineates the responsibilities, authority, duration, compensation, and any other terms relevant to the agency relationship.
Step-by-step explanation:
To convert an implied agency to an express agency, a broker must enter into a contractual agreement with the client that clearly lays out the duties, responsibilities, and expectations of both parties. This can often be done by creating a written agency agreement that both the broker and the client sign. An express agency agreement provides a formal framework for the relationship, detailing the authority the agent has, compensation, duration of the agreement, and any specific obligations or conditions.
Establishing an express agency benefits both the broker and the client because it eliminates ambiguity and ensures that both understand their roles and responsibilities. No assumptions are made about the extent of the agent's authority, as these are defined in the agreement.
Steps to Convert Implied to Express Agency:
- Discuss the desire to formalize the agency relationship with the client.
- Draft a detailed written agreement outlining the terms and conditions.
- Review the agreement with the client to ensure mutual understanding and agreement.
- Have both parties sign the contract to create an express agency relationship.