Legal Question in Real Estate Law in California

Implied agency refers to a situation in which a third party deals with a person who may not fit the exact legal requirements to be your agent, but based on the facts and circumstances of the situation it would be unfair to allow you to deny that they were your agent. It has NOTHING to do with the relationship between a prospective agent and principal. Furthermore, in real estate there are very strict requirements for the formation of a listing agency. Your friend has no right to rely on anything, and in fact would put their license in jeopardy of discipline if not revocation, if they attempted to assert that they had become your listing agent without complying with all the required formalities.

Try negotiating the rate with your freind. Brokers commissions are negotiable, not fixed.

There is no such thing as implied agency or oral contracts regarding the sale of real estate. Negotiate a written agency agreement with whomever you like. Keep in mind the normal commission on residential real estate is 6%, but sometimes can be reduced to 5%. Anything less than that means no buyers' broker would be interested in showing your house.

I agree with Mr. McCormick and disagree with Mr. Christian. There is nothing to negotiate if you do not have a signed listing agreement. The law and the courts are very strict when it comes to real estate agents seeking a commission, and the doctrine of implied agency is not applied to them to rescue a deal that should have been in writing.

I also disagree with Mr. Nelson, in that the rate of the commission is completely negotiable and there is not requirement that it be 6 or even 5 percent for that matter.