Agency

Ostensible (apparent) agency in real estate most commonly arises when:

AA broker creates a written agency agreement without client signature
BA principal's words or conduct lead a third party to reasonably believe agency exists✓ Correct
CTwo brokers informally agree to share a commission
DA salesperson acts without the employing broker's knowledge

Explanation

Apparent (ostensible) agency arises when a principal's words, conduct, or representations lead a third party to reasonably believe that someone is acting as their agent, even without actual authorization. The principal may be bound by acts within the scope of apparent authority.

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