AgencyIntermediateDelaware Exam

What is 'estoppel' in the context of Delaware real estate agency?

ASimply an informal method used only to prevent an agent from changing brokerages in the middle of a transaction
BA legal principle that prevents a party from acting inconsistently with a prior representation they madeCorrect
CA court order stopping an unauthorized real estate transaction
DA Delaware Real Estate Commission rule prohibiting certain agent conduct

Why A legal principle that prevents a party from acting inconsistently with a prior representation they made Is Correct

Answer B: A legal principle that prevents a party from acting inconsistently with a prior representation they made

Estoppel prevents a party from asserting a position inconsistent with a prior representation or conduct when another party has relied on that representation. In real estate agency: if a listing agent consistently acted as the buyer's agent and the buyer relied on this, the agent may be estopped from later claiming they only represented the seller.

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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