Agency
In Texas, 'ostensible agency' (or apparent authority) exists when:
AAn agent has an express written contract with a client
BA principal's conduct reasonably leads a third party to believe that an agency relationship exists✓ Correct
CTwo brokers share the same listing
DAn agent acts beyond their authority without client knowledge
Explanation
Apparent (ostensible) authority arises when a principal's actions or statements cause a third party to reasonably believe that an agency relationship exists, even if no formal agreement was made. The principal may be bound by the agent's acts under apparent authority.
Related Texas Agency Questions
- Under Texas law, a license holder who discovers during a transaction that property they are selling is involved in an undisclosed lawsuit should:
- When a Texas real estate agent discovers that a material fact has changed after a listing agreement is signed (e.g., a neighbor's property is contaminated), the agent should:
- A Texas buyer's agent who has actual knowledge that a listed property has foundation issues the seller has not disclosed is obligated to:
- A Texas broker's listing expires. The seller then sells the property themselves within the protection period specified in the expired listing. The broker may be entitled to a commission if:
- A Texas real estate agent who earns an undisclosed secret profit from a transaction is breaching the duty of:
- In Texas, a 'designated agent' differs from an intermediary in that a designated agent:
- A Texas seller's agent learns the seller is in financial distress and must sell quickly. This information:
- The IABS form in Texas must be provided:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →