Agency
A real estate agent's authority to bind their principal in a contract is known as:
AActual or express authority
BImplied, express, or apparent authority, depending on the circumstances✓ Correct
COnly implied authority
DUniversal authority
Explanation
An agent may have express authority (explicitly granted), implied authority (reasonably inferred from their role), or apparent authority (reasonably believed by third parties) — the scope varies by situation.
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Key Terms to Know
Agency
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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