Agency

What does 'scope of authority' mean for a Rhode Island real estate agent?

AThe geographic area where the agent may practice
BThe range of activities the agent is authorized to perform on behalf of the principal✓ Correct
CThe number of clients an agent may represent simultaneously
DThe license categories an agent holds

Explanation

Scope of authority defines what activities the agent is authorized to perform for the principal. In real estate, a listing agreement grants the broker authority to market and sell the property; activities outside this authority may not bind the principal.

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