A seller in Waterloo, Iowa, hires Agent Brooks as a listing agent. The listing agreement grants Agent Brooks the authority to accept offers on the seller's behalf and to bind the seller to a contract without prior approval. What type of authority has the seller granted to Agent Brooks?
Correct Answer
A) Express authority, specifically granted in writing through the listing agreement
Express authority is authority that is explicitly and specifically granted to an agent by the principal, either in writing or orally. In this scenario, the listing agreement specifically grants Agent Brooks the power to accept offers and bind the seller — this is a clear, written, express grant of authority. Iowa listing agreements are written contracts under Iowa Code Chapter 543B, and any authority specifically stated in that agreement constitutes express authority.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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