Agency
What is 'ostensible agency' (also called apparent agency)?
AAgency created by written contract
BAgency created when a principal allows a third party to reasonably believe someone is their agent✓ Correct
CAgency that arises by court order
DAgency between two licensed brokers
Explanation
Ostensible agency (apparent agency) occurs when a principal's conduct leads a third party to reasonably believe that a person is the principal's agent, even if no formal agency agreement exists. The principal can be bound by the agent's acts.
Related California Agency Questions
- When a listing expires, which of the following is still required of the agent?
- A selling agent (buyer's agent) is required to conduct which type of inspection of a residential property in California?
- Which of the following is a fiduciary duty owed by a California listing broker to the seller?
- What is 'ratification' as it applies to agency?
- In a buyer's agency relationship, to whom does the agent owe fiduciary duties?
- In California, an agent's duty of 'obedience' to their principal means the agent must:
- How is an agency relationship most commonly created in California real estate?
- What is 'designated agency'?
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