Express agency is created when the principal and agent explicitly state their intention to form an agency relationship. While this can be done orally, the best and most legally sound method is through a written agreement. A listing agreement is a formal written contract creating an express agency relationship between a seller and a broker. Similarly, a buyer representation agreement is a written contract that establishes an express agency relationship between a buyer and a broker. These documents clearly define the duties, responsibilities, and compensation, minimizing misunderstandings and ensuring enforceability, which aligns with professional standards and Virginia law.

A. Oral agreements are not the best method for creating agency due to potential disputes and issues with enforceability under the Statute of Frauds.

B. Ratified actions (ratification) create an implied agency relationship after the fact, not an express agency relationship established upfront.

C. Ratified actions create an implied agency, which is fundamentally different from an express agency created by a direct agreement.

1. Code of Virginia, Title 54.1, Chapter 21. Specifically, § 54.1-2137(A) states, "A licensee shall not be deemed to have a brokerage relationship with a party... in the absence of a written agreement between the licensee and the party." This underscores the legal preference and frequent necessity for written agreements to formally establish agency.

2. Gaddy, D., & Hart, J. A. (2023). Virginia Real Estate Practice & Law (11th ed.). Dearborn Real Estate Education. In the chapter on Agency Law, the text distinguishes between express and implied agency, identifying listing contracts and buyer representation contracts as the primary instruments for creating an express agency relationship in writing (Chapter 7, pp. 104-106).

3. Virginia Real Estate Board. (2020). Virginia Real Estate Board Licensing Regulations. 18VAC135-20-180. The regulations on Disclosure of Brokerage Relationship, while not mandating a written agreement in all scenarios, are structured around the assumption of a formal agreement. A written agreement is the best practice to ensure all required disclosures are made and acknowledged properly.