AgencyIntermediateAlaska Exam

Which of the following BEST defines 'actual authority' in a real estate agency context?

AAuthority implied by the agent's conduct
BAuthority the principal has expressly or impliedly granted to the agentCorrect
CAuthority created when a third party reasonably believes the agent has authority
DAuthority granted by the Alaska Real Estate Commission

Why Authority the principal has expressly or impliedly granted to the agent Is Correct

Answer B: Authority the principal has expressly or impliedly granted to the agent

Actual authority is the authority that a principal has expressly or impliedly granted to an agent. It can be expressed in the listing agreement or implied from the nature of the agent's role and the circumstances of the agency.

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.

Key Agency Terms in This Question

People Also Study

Practice More Alaska Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Alaska Quiz →