Agency (alternative)
Under Maryland law, apparent authority of an agent arises when:
AThe agent has a written authorization from the principal
BA third party reasonably believes the agent has authority based on the principal's actions or representations✓ Correct
CThe agent acts beyond their actual authority without the principal's knowledge
DThe agent has implied authority from industry custom
Explanation
Apparent authority exists when the principal's conduct leads a third party to reasonably believe the agent has authority to act, even if no such actual authority was granted.
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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.
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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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