AgencyIntermediateCalifornia Exam

An agent who creates the impression of being someone's agent through conduct, even without an express agreement, has created what type of agency?

AExpress agency, per standard fiduciary practice in the industry
BOstensible (apparent) agencyCorrect
CImplied agency, under standard California agency practice
DRatified agency, as commonly applied in brokerage relationships

Why Ostensible (apparent) agency Is Correct

Answer B: Ostensible (apparent) agency

Ostensible (or apparent) agency arises when a principal's conduct leads a third party to reasonably believe an agency relationship exists, even if no formal agreement was made. The principal can be bound by the ostensible agent's actions.

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

People Also Study

Study This Topic

Practice More California Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free California Quiz →