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formation of an agency relationship agency relationships are key concept on the real estate licensing exam for you to represent any party in a real estate transaction you must establish an agency relationship a true agency relationship has additional duties called fiduciary duties that are offer acquired by law as an agent you could be held liable for violation of these duties or not performing them as required to help you remember them use the acronym old car obedience loyalty disclosure confidentiality accounting and reasonable care in real estate there are two things that establish agency relationships an agreement between the parties which creates a documented express agency or the actions of the parties which creates an implied type of agency it is important to note that if the statute of frauds in your state requires real estate agency agreements to be in writing you might need an express agency agreement to collect a commission from your client now lets look at the different wa