AgencyIntermediateDelaware Exam

What is 'apparent authority' in a Delaware real estate agency relationship?

AAuthority expressly granted in writing by the principal
BAuthority the principal's conduct leads third parties to reasonably believe the agent hasCorrect
CAuthority granted automatically by the Commission
DAuthority derived from the MLS membership agreement

Why Authority the principal's conduct leads third parties to reasonably believe the agent has Is Correct

Answer B: Authority the principal's conduct leads third parties to reasonably believe the agent has

Apparent authority (ostensible authority) exists when a principal's words or conduct cause a third party to reasonably believe that an agent has authority to act on the principal's behalf, even without express authorization.

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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