AgencyIntermediateArizona Exam

In Arizona, an agent's authority to bind their principal in negotiations is called:

AExpress authority given in the listing agreement or buyer representation agreementCorrect
BApparent authority implied by the agent's actions
CImplied authority to take any action needed to complete the transaction
DAgency authority that exceeds the principal's instructions

Why Express authority given in the listing agreement or buyer representation agreement Is Correct

Answer A: Express authority given in the listing agreement or buyer representation agreement

Express authority is explicitly granted to the agent by the principal in the agency agreement (listing agreement or buyer representation agreement), defining what the agent is authorized to do on the principal's behalf.

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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