AgencyIntermediateDelaware Exam

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 conductCorrect
CSimply the limited, informal authority a newly licensed agent has during the period before being fully trained
DAuthority limited to showing properties without negotiating

Why Authority that a third party reasonably believes an agent has based on the principal's conduct Is Correct

Answer B: Authority that a third party reasonably believes an agent has based on the principal's conduct

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.

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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