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

What type of authority is granted through express agreements and some implied agreements?

1. Implied Authority

2. Actual Authority

3. Apparent Authority

4. Limited Authority

The correct answer is: Actual Authority

The correct answer is that the type of authority granted through express agreements and some implied agreements is Actual Authority. Actual Authority arises from a principal's express or implied consent to grant authority to an agent to act on their behalf. When there is an express agreement, the principal explicitly states the powers being granted to the agent, often documented in writing or through verbal confirmation. Implied authority, on the other hand, refers to the powers that are not explicitly stated but are necessary for the agent to perform their duties effectively in accordance with the intentions of the principal. For instance, if a real estate agent is hired through a written contract to sell a property, they have actual authority to negotiate terms, show the property, and execute contracts related to the sale. This authority is constructed directly from the agreement made between the principal and the agent. The other types of authority discussed in the options serve different roles. Implied Authority specifically relates to powers not detailed that are necessary for completing the tasks given by the principal but are directly linked to Actual Authority. Apparent Authority involves situations where a third party might assume an agent has authority based on the principal's behavior. Limited Authority restricts the agent’s powers to specific tasks or transactions. While these concepts are related,