Agency

What is 'ratification' of an agent's unauthorized act in Pennsylvania real estate?

APREC's approval of a licensee's conduct after an investigation
BA principal's after-the-fact approval of an agent's act that exceeded the agent's authority, making the act binding✓ Correct
CThe court's confirmation of a real estate contract after a dispute
DA seller's acceptance of an offer that was presented without the seller's prior authorization

Explanation

Ratification occurs when a principal (seller or buyer) learns that their agent exceeded their authority and, instead of repudiating the act, approves it after the fact. The ratification makes the agent's unauthorized act as binding as if it had been authorized from the beginning. For example, if a listing agent accepts an offer without authority but the seller later approves it, the seller has ratified the agent's act.

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