Agency
An 'ostensible agency' (apparent authority) arises when:
AA broker is explicitly authorized by the principal in writing
BA third party reasonably believes a person is an agent based on the principal's conduct, even without actual authority✓ Correct
CThe DRE grants temporary authority to an unlicensed person
DA salesperson acts as a broker when their broker is unavailable
Explanation
Ostensible (apparent) agency is created when the principal's words or actions lead a third party to reasonably believe that another person is their agent, even though no actual agency was established. The principal may be bound by the ostensible agent's acts.
Related California Agency Questions
- What is the term for an agency created by written or oral agreement between the principal and agent?
- What is 'ratification' as it applies to agency?
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- In California, when a broker represents both buyer and seller with written consent, what limitations apply to the dual agent?
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