Agency

What is 'ratification' in Nevada real estate agency law?

AThe process by which NRED approves a new brokerage
BThe principal's after-the-fact approval and acceptance of an unauthorized act performed by a person acting as their agent, which retroactively creates a binding agency relationship✓ Correct
CThe formal signing of a purchase agreement by all parties
DA court process for approving real estate transactions involving minors

Explanation

Ratification occurs when a principal accepts and affirms an unauthorized act by a person purporting to act as their agent. For example, if an unlicensed person negotiates a deal on behalf of a property owner and the owner then accepts the deal — knowing it was negotiated by the unlicensed person — the owner has ratified the act.

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