Agency and Fiduciary Duties, 17% of the examination

Ostensible agency

An agency arising from conduct that leads a third party reasonably to believe someone is an agent, with no written agreement.

Sometimes called apparent agency. It matters because it creates real duties and real liability the principal never intended. Candidates assume a signature is required to create a duty. It is not.

What this is confused with

The exam rarely asks for a definition. It describes a situation and offers two terms that both sound plausible.

Express agency

Express agency comes from an actual agreement, written or oral.

See it in a question

One question from Agency and Fiduciary Duties, so the term lands in the context the exam uses it in.

Agency and Fiduciary Duties · 17%Disclosure of Agency

A listing agent learns at an open house that an unrepresented buyer will pay well above asking. What does the agent owe each party?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.

Where this is tested

Laws of Agency and Fiduciary DutiesWho you represent, when that duty begins, and what you owe someone you do not represent. California runs its own disclosure regime and permits dual agency with consent, which is where borrowed national study material fails.17%Practise Agency and Fiduciary Duties34 questions on this area, every option explained.Practice

What this is confused with

See it in a question

Where this is tested

Other terms in this area