Agency
What is 'agency by ratification' in Delaware real estate?
AAgency created by the Commission's approval
BAn agency relationship created when a principal approves unauthorized acts taken on their behalf after the fact✓ Correct
CAgency created through a formal written agreement
DThe process of the state ratifying an agency's license
Explanation
Agency by ratification occurs when a principal approves (ratifies) acts taken by a person without prior authorization, thereby creating an agency relationship retroactively. The principal's approval of the unauthorized acts binds them as if authority had been granted initially.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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