Agency
In Rhode Island, what is 'ostensible authority' (apparent authority) and how does it arise in real estate?
AAuthority granted by a written agency agreement
BAuthority that arises from the principal's conduct that leads a third party to reasonably believe the agent has authority to act, even if no actual authority was granted✓ Correct
CAuthority required by the DBR
DAuthority to represent a buyer only
Explanation
Apparent (ostensible) authority arises when the principal's conduct or representations lead a third party to reasonably believe that the agent has authority to act on the principal's behalf. The principal may be bound by the agent's acts within the scope of this apparent authority.
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