Types of authority

Question 1

Agency by actual authority

Answer 1

oral or written express authority granted to an agent. (i.e. listing agreement or buyers rep)

Question 2

Ostensible agency

Answer 2

this takes place when actions lead a person to assume one is an agent. (i.e. if someone was to falsely assert that they were someone’s agent and the individual did not correct them)

Question 3

Agent by ratification

Answer 3

occurs when the agent acts without authorization but the principal accepts it upon learning of the action.

**not to be confused with ostensible agency

(i.e.) if an agent sold a house for someone who wasn’t currently living in the property and allowed the buyers to move in a week before closing, but collected a week of rent from the buyers. If, when the seller received a sum of money in addition to what they were expecting, they accepted the payment; the seller has ratified the unauthorized action of the agent.

Question 4

Agency by estoppel

Answer 4

takes place when a principal inadequately supervises an agent; the agent, then, takes on additional powers. If this new activity causes a third party to believe the agent has these powers, then agency by estoppel has been created.

Question 5

Agency coupled with interest

Answer 5

this occurs when a broker is the owner of a property being sold or is interested in buying a property.

Question 6

Express authority

Answer 6

A written listing agreement or buyer representation agreement provides the agent with express authority.

Question 7

Implied authority

Answer 7

things that fall into the “norm”, i.e. weekend and evening showings are customary practice in residential real estate.