AgencyIntermediateCalifornia Exam

Which of the following would most likely create an ostensible (apparent) agency?

AA signed exclusive buyer representation agreement, per standard fiduciary practice in the industry
BA seller allowing an unlicensed assistant to show property and negotiate offersCorrect
CA broker managing their own rental property, under standard California agency practice
DAn agent working under supervision, as commonly applied in brokerage relationships

Why A seller allowing an unlicensed assistant to show property and negotiate offers Is Correct

Answer B: A seller allowing an unlicensed assistant to show property and negotiate offers

Ostensible or apparent agency arises when a principal's conduct leads a third party to reasonably believe someone is their agent, even without formal authorization. Allowing someone to act as an agent creates this appearance.

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

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