Agency

What is 'apparent authority' in a Nevada real estate agency context?

AAuthority that is clearly written in the listing agreement
BAuthority that a third party reasonably believes an agent has based on the principal's conduct or representations, even if that authority was not actually granted — the principal can be bound by the agent's acts within apparent authority✓ Correct
CThe visual authority of an agent to show properties
DA type of authority that expires after 30 days in Nevada

Explanation

Apparent authority arises when the principal's words or actions lead a third party to reasonably believe the agent has authority to act on the principal's behalf — even if the agent was not actually authorized. In Nevada real estate, if a broker's conduct suggests an agent has authority to accept offers (even though the broker never actually granted that authority), the broker may be bound by the agent's acceptance. Principals protect themselves by clearly defining and limiting agent authority and notifying third parties.

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