Agency
In Hawaii, what is 'apparent authority' or 'ostensible agency' in real estate?
AA. Authority granted to a licensee by the Real Estate Commission
BB. When a principal's actions make it appear that an agent has authority they were not actually granted✓ Correct
CC. Authority to negotiate any price change without client approval
DD. The broker's authority over their salesperson
Explanation
Ostensible (apparent) authority occurs when the principal's conduct leads third parties to reasonably believe the agent has authority, even if they don't. The principal can be bound by the agent's acts.
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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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe 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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