An agent's authority can be express (specifically stated in the agreement), implied (reasonably necessary to carry out express authority), or apparent (perceived by third parties). Acting outside the scope of authority can expose both the agent and principal to liability.
A listing agreement authorizes a broker to market and sell the property. This express authority implies the broker can place signs, advertise, and schedule showings. However, the broker cannot accept an offer on behalf of the seller unless specifically authorized to do so.
Know the three types: EXPRESS (written/stated), IMPLIED (reasonably necessary), APPARENT (what others believe). An agent who exceeds their authority may be personally liable. The principal is NOT bound by unauthorized acts unless they ratify them.
Related Terms
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
Frequently Asked Questions
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