What are the risks of implied agency?

A lack of transparency is the primary risk. There isn’t a clear understanding of the obligations and responsibilities of each party. For an agent, if the court determines that an implied agency relationship exists, the agent will be held to the same fiduciary duties owed to a client, including disclosure, loyalty, and confidentiality, and could face consequences for not meeting those duties. Implied agency also leads to confusion and disagreements involving compensation (how much, who is paying it, etc.) and the scope of the relationship (how long does it last, which properties are subject to the relationship, etc.).