Agency

What is 'estoppel' as it applies to a Pennsylvania real estate agent's representations?

AA legal doctrine preventing agents from changing their commission rate after the agreement is signed
BA principle preventing a person from asserting a position inconsistent with their prior representations upon which another party has reasonably relied to their detriment✓ Correct
CA PREC rule stopping licensees from representing competing clients
DAn accounting principle preventing the double-counting of agency fees

Explanation

Estoppel (equitable estoppel) prevents a party from taking a position that contradicts their earlier representations if another party reasonably relied on those representations to their detriment. In Pennsylvania real estate, if a broker represents to a buyer that a property is free of encumbrances and the buyer relies on this to make the purchase, the broker may be estopped from later claiming they made no warranty. Estoppel is an equitable defense, not a cause of action.

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