AgencyIntermediateAlaska Exam

In Alaska, an agent who has 'apparent authority' is acting on authority that:

AWas explicitly granted in the listing agreement
BThe principal has caused third parties to reasonably believe exists, even if not actually grantedCorrect
CWas granted by the Alaska Real Estate Commission, though outcomes can differ depending on circumstances
DHas been ratified in writing by the broker

Why The principal has caused third parties to reasonably believe exists, even if not actually granted Is Correct

Answer B: The principal has caused third parties to reasonably believe exists, even if not actually granted

Apparent authority (ostensible authority) arises when a principal's conduct leads third parties to reasonably believe that an agent has authority to act on the principal's behalf, even if no such authority was actually granted.

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

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