Apparent authority in a real estate agency relationship arises when:
Why A third party reasonably believes the agent has authority based on the principal's words or actions Is Correct
Answer B: A third party reasonably believes the agent has authority based on the principal's words or actions
Exam Tip: Agency
Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.
Key Agency Terms in This Question
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Related North Carolina Questions
- Under NC law, an agency relationship created through the conduct of the parties (rather than a written agreement) is called:Agency
- Which document in North Carolina establishes the seller's agency relationship and authorizes the broker to market the property?Agency
- The agency relationship between a listing broker and seller in North Carolina is created by:Agency
- In North Carolina, a broker's agency relationship is terminated by all of the following EXCEPT:Agency
Key Terms to Know
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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