Final answer:
The agency created when an agent appears to represent the buyer, even though they legally represent the seller, is ostensible agency.
Step-by-step explanation:
The agency created when an agent appears to represent the buyer, even though they legally represent the seller, is ostensible agency. In this type of agency, the principal (seller) intentionally or negligently allows the agent to appear as if they represent the buyer. This can happen when the agent has a close relationship with the buyer or is acting on behalf of a undisclosed third party.
For example, let's say John is selling his house and he hires a real estate agent, Sarah. Unbeknownst to the buyer, Sarah has a close relationship with another buyer, Peter. Sarah acts as if she represents Peter, even though legally she represents John. This creates an ostensible agency where the buyer believes Sarah is acting on their behalf.
Some additional examples of ostensible agency can be seen in the relationship between a salesperson and a customer at a retail store, or a salesperson and a client at a car dealership.