Agency
What is 'apparent authority' in Delaware real estate agency?
AAuthority that is clearly stated in the listing agreement
BAuthority that a third party reasonably believes an agent has based on the principal's conduct — even if the agent was not actually authorized; the principal can be bound by the agent's acts within the scope of apparent authority✓ Correct
CThe authority a newly licensed agent has before being fully trained
DAuthority limited to showing properties without negotiating
Explanation
Apparent authority exists when a principal's conduct creates a reasonable belief in a third party that the agent has authority to act. Example: if a seller allows their agent to handle all negotiations without limits, the agent may have apparent authority to accept an offer — even if privately told not to accept without calling first.
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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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
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