Agency

Ostensible (apparent) authority in an Indiana real estate agency occurs when:

AAn agent has explicit written authorization to act
BA principal's conduct leads a third party to reasonably believe the agent has authority, even if no actual authority was granted✓ Correct
CA sub-agent acts on behalf of the principal
DAn agent exceeds their actual authority with the principal's knowledge

Explanation

Apparent (ostensible) authority arises when the principal's words or actions lead a third party to reasonably believe the agent is authorized to act. The principal may be bound by the agent's actions within the scope of apparent authority.

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