Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Duties explicitly told to an agent by the principal are referred to as what?

1. Implied Authority

2. Express Actual Authority

3. Fiduciary Duties

4. General Authority

The correct answer is: Express Actual Authority

The concept of expressed actual authority directly pertains to the duties that the principal explicitly communicates to the agent. This type of authority is clearly defined and gives an agent the power to act on behalf of the principal in specific matters as designated by the principal. When a principal informs the agent about their responsibilities and the limits of their actions, this is considered express authority. In real estate and other agency relationships, having a clear understanding of express authority is crucial, as it delineates the scope of what the agent is authorized to do. This ensures that the agent’s actions align with the principal’s instructions, reinforcing trust and clarity in the professional relationship. The duties that fall under this authority can include specific tasks like negotiating terms or making decisions about a property, explicitly granted by the principal. Other concepts like implied authority or fiduciary duties encompass broader or different responsibilities that may not be explicitly stated, making them distinct from express actual authority. For a successful agency relationship, clarity of authority helps prevent misunderstandings and potential conflicts.