Katie and Rich own a rental home they have put up FSBO. They've noticed the same woman has accompanied several potential buyers viewing the home. Katie and Rich discover she is a broker that has been "showing" the home on the sly without their permission. Instead of fighting this aggressive salesperson, the couple just go along. In which manner was agency created?
Owner didn't take steps to stop unauthorized showings, and so on the surface an agency appears to exist. Third parties have a just cause to believe the broker to be the owner's broker.