Agency
An agency relationship may be created by all of the following EXCEPT:
AAn express written agreement (listing agreement)
BThe conduct of the parties (implied agency)
CRatification of unauthorized acts
DUnilateral declaration by the agent without client knowledge✓ Correct
Explanation
Agency can be created expressly (written or oral agreement), by implication (conduct of the parties), by ratification (principal later approves agent's unauthorized acts), or by estoppel. An agent cannot unilaterally create an agency relationship without the principal's knowledge or consent.
People Also Study
Related Pennsylvania Questions
- Agency by estoppel is created when:Agency
- A Pennsylvania broker who is the listing broker and buyer's broker in the same transaction must have written consent for dual agency from:Contracts
- What is 'apparent authority' in Pennsylvania real estate agency and how can it create liability for a principal?Agency
- When a Pennsylvania broker represents both the buyer and seller in the same transaction with full informed written consent from both parties, this is called:Agency
- The fiduciary duty of 'loyalty' in a buyer agency relationship requires the agent to:Agency
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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Study This Topic
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →