What does implied authority allow an agent to do?

Implied authority allows an agent to engage in actions that are not explicitly outlined in the agency agreement but are necessary to effectively carry out the express authority granted to them. This means that when an agent has been given specific duties or responsibilities, they may also take additional steps that are commonly understood as necessary to fulfill those duties, even if those steps are not detailed in the written contract.

For example, if an agent is given the express authority to negotiate a property sale, implied authority would allow the agent to perform all actions typically associated with that negotiation, such as arranging for inspections or communicating with potential buyers. These actions are not specifically mentioned in the contract but are essential to executing the express authority.

This understanding of implied authority is crucial in the context of real estate transactions and title insurance, as it allows agents to navigate situations effectively, ensuring that they can act in their principal's best interest without needing explicit permission for every step taken within the scope of their express authority.