AgencyIntermediateDelaware Exam

What is the 'scope of authority' in a Delaware real estate agency relationship?

AThe geographic territory in which the agent may operate
BThe limits of the agent's power to act on behalf of the principal, as defined by the listing or buyer representation agreementCorrect
CThe types of properties the agent is authorized to sell
DThe number of clients the agent may represent simultaneously

Why The limits of the agent's power to act on behalf of the principal, as defined by the listing or buyer representation agreement Is Correct

Answer B: The limits of the agent's power to act on behalf of the principal, as defined by the listing or buyer representation agreement

The scope of authority defines the boundaries of the agent's power to act on the principal's behalf. It is typically established by the listing agreement (for seller's agents) or buyer representation agreement (for buyer's agents) and may be limited by the principal's instructions.

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.

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