Agency
When a NH agent acts outside the scope of their authority (e.g., agreeing to extend the closing date without client authorization), the resulting action is:
ABinding on the client regardless
BUnauthorized and not binding unless the client ratifies it✓ Correct
CAutomatically void and permanently unenforceable
DEnforceable against the agent personally only
Explanation
An agent acting without authority (beyond their actual or apparent authority) creates an unauthorized act. The principal may ratify it (making it binding) or repudiate it.
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Key Terms to Know
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AgencyA 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.
Math Concepts
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