Agency

Apparent authority (ostensible agency) in real estate exists when:

AAn agent is formally appointed in writing
BA principal's conduct leads a third party to reasonably believe an agency exists, even if no formal agency was created✓ Correct
CAn agent acts outside their authority without the principal's knowledge
DAn agent represents multiple principals simultaneously

Explanation

Apparent authority arises when a principal's words or conduct lead a third party to reasonably believe an agency relationship exists. The principal may be bound by the agent's acts even if no formal agency was actually created.

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