Agency by 'estoppel' means the agency is created because:
Why A principal's actions or silence prevented them from denying an agency existed Is Correct
Answer B: A principal's actions or silence prevented them from denying an agency existed
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
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
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Related California Questions
- Which type of agency is created when a principal's actions lead a third party to reasonably believe an agency relationship exists?Agency
- Which type of agency relationship is created when a principal approves an act already performed without prior authorization?Agency
- Which fiduciary duty requires an agent to keep the principal's confidential information secret even after the agency relationship ends?Agency
- An agent who creates the impression of being someone's agent through conduct, even without an express agreement, has created what type of agency?Agency
- What type of agency relationship exists between a property manager and a property owner?Property Management
Key Terms to Know
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
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