Agency
What is 'agency by estoppel' in Illinois real estate?
AAgency created by a written contract that cannot be revoked
BAgency that arises when a principal's actions lead a third party to reasonably believe an agency exists, preventing the principal from denying it✓ Correct
CAgency created by IDFPR when a licensee fails to disclose their relationship
DAgency terminated by the court's order (estoppel)
Explanation
Agency by estoppel (also called apparent agency) prevents a principal from denying an agency relationship when their conduct has led a third party to reasonably believe that an agency exists. If the third party relies on that belief to their detriment, the principal is estopped (prevented) from denying the agency.
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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.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
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.
Math Concepts
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