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

Which authority involves actions necessary to complete the duties that were expressly authorized?

1. Actual Authority

2. Apparent Authority

3. Implied Actual Authority

4. Limited Actual Authority

The correct answer is: Implied Actual Authority

The concept of implied actual authority refers to the actions that an agent can take to fulfill the duties and responsibilities that have been expressly granted to them. This type of authority is not explicitly stated in the agreement but is necessary for the agent to effectively perform their job. When an agent is given a specific task or authority, there are often associated actions that are understood as necessary to achieve the desired results. Implied actual authority allows agents to take those necessary actions without needing to seek explicit permission for each step. For example, if a real estate agent is authorized to sell a property, they implicitly have the authority to take necessary steps such as advertising the property, showing it to potential buyers, and negotiating offers. This authority is recognized in business practices where the actions taken by an agent align with the principal's intent, even if not specifically detailed in the agreements. Understanding this helps clarify the dynamic between the agent and principal and ensures operations can proceed smoothly without the need for constant oversight on every action taken. The other choices relate to different forms of authority such as actual authority, which is directly granted, and apparent authority, which may be perceived by third parties even if not granted directly. Limited actual authority pertains to specific boundaries set by the principal.