In the scenario where Joe and Emma Parsons are working informally with their neighbor Kyle, what type of agency agreement is exemplified?

The scenario involving Joe and Emma Parsons working informally with their neighbor Kyle exemplifies an implied agency agreement. In real estate, an implied agency occurs when the actions and circumstances suggest that one party is acting on behalf of another without a formal contract being established.

In this context, the informal nature of their arrangement indicates that the parties may not have a written or verbally expressed agreement, yet Kyle’s actions imply that he is representing Joe and Emma in some capacity. This can happen through a variety of behaviors or informal conversations that signal mutual consent to the agency relationship, even if not explicitly stated.

The other types of agency agreements would require more formal characteristics. An express agency, for example, necessitates a clear and distinct agreement between the parties, which is not the case here. A negotiated agency implies a formal discussion or agreement reaching terms, while a written agency requires a documented contract, both of which do not fit the informal interaction described in the scenario. This distinction helps clarify the nature of the relationship between Joe, Emma, and Kyle.