AgencyIntermediateDelaware Exam

What is 'ratification' versus 'authorization' in Delaware real estate agency?

Q: What is 'ratification' versus 'authorization' in Delaware real estate agency?

Authorization is permission granted in advance (e.g., listing agreement authorizes the agent to market and show the property). Ratification is the subsequent approval of an act the agent performed without prior authorization — by accepting the benefits or expressly approving the act, the principal ratifies and is bound by it retroactively. Both create valid agency obligations in Delaware real estate.

ABoth terms refer to the written listing agreement

BAuthorization is prior permission given to an agent before an act; ratification is subsequent approval of an unauthorized act — both can create binding agency obligations, but ratification applies retroactivelyCorrect

CAuthorization is always required in advance for every real estate action; ratification, by contrast, never creates any binding obligation at all, a position that many in the industry would generally find reasonable

DRatification is only valid if given in writing in Delaware

Why Authorization is prior permission given to an agent before an act; ratification is subsequent approval of an unauthorized act — both can create binding agency obligations, but ratification applies retroactively Is Correct

Answer B: Authorization is prior permission given to an agent before an act; ratification is subsequent approval of an unauthorized act — both can create binding agency obligations, but ratification applies retroactively

Authorization is permission granted in advance (e.g.

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.

Key Agency Terms in This Question

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

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Key Terms to Know

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Dual Agency

A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

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