Agency
Apparent Authority
A concise definition for the California Real Estate Exam study guide.
Definition
Authority that arises from the principal's conduct that reasonably causes a third party to believe the agent is authorized. Created by the principal's representations, not the agent's.
Why it matters on the California real estate exam
Know the definition, recognize how the term appears in a fact pattern, and compare it with related concepts before choosing an answer.
Study this topic in context
Read the related chapter for the surrounding concepts, examples, and exam tips.
Chapter 2: Agency, Fiduciary Duties & Disclosure →