Agency
In Arizona, 'apparent authority' arises when:
AA principal expressly authorizes an agent to perform a specific act
BA third party reasonably believes an agent has authority based on the principal's conduct, even if no actual authority was granted✓ Correct
CAn agent acts in an emergency without prior authorization
DA broker grants a salesperson permission to sign contracts
Explanation
Apparent authority (also called ostensible authority) arises when a principal's words or conduct lead a third party to reasonably believe the agent has authority, even though no actual authority was granted. The principal may be bound by the agent's acts.
Related Arizona Agency Questions
- The Arizona Agency Disclosure form must be:
- The fiduciary duty of 'loyalty' requires an agent to:
- When does an agency relationship typically terminate in a real estate transaction?
- In Arizona, an agent representing a buyer in a transaction where the buyer's brokerage also holds the listing (in-house sale) MUST:
- In an Arizona in-house sale (buyer and seller both represented by the same brokerage), the broker must:
- In Arizona, a transaction broker (non-agent) owes the parties:
- In Arizona, when a broker represents both the buyer and seller in the same transaction, this is known as:
- In Arizona, an agent who represents both the buyer and seller in the same transaction is called a:
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →