Agency

What is 'ostensible agency' (apparent agency) in Idaho real estate?

AAn agency relationship with a property management company
BWhen a principal's words or conduct lead a third party to reasonably believe an agency relationship exists, even if no formal agreement exists, creating apparent authority✓ Correct
CAn agency relationship that appears in public records
DA temporary agency arrangement pending a formal agreement

Explanation

Apparent authority (ostensible agency) arises when a principal's conduct or representations cause a third party to reasonably believe an agent has authority to act on the principal's behalf. In Idaho, a seller who allows an agent to take buyers on tours and market the property without a listing agreement may be bound by the apparent agency created by their conduct.

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