Agency

An agent's authority to bind their principal in South Dakota real estate transactions comes from:

AThe MLS listing agreement
BAn agency agreement (listing agreement or buyer agency agreement)✓ Correct
CThe state real estate commission
DThe closing attorney's approval

Explanation

An agent's authority to act on behalf of their principal arises from an agency agreement — a listing agreement for seller representation or a buyer agency agreement for buyer representation. The scope of the agent's authority is defined by the terms of this agreement.

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