A real estate agent's authority to bind their principal in a contract is known as:
Why Implied, express, or apparent authority, depending on the circumstances Is Correct
Answer B: Implied, express, or apparent authority, depending on the circumstances
Exam Tip: Agency
Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.
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- A seller's agent who acts within the scope of their authority to negotiate a contract price with a buyer has which type of authority?Agency
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- A real estate contract that includes a right for one party to assign their contractual rights to a third party allows for:Contracts
- A seller's broker who discovers that the buyer their seller is under contract with is the broker's own relative should:Agency
Key Terms to Know
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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