California Real Estate Practice Exam

A broker negotiating a sale on behalf of a buyer without permission is considered to be?

1. Acting independently

2. Operating under apparent authority

3. Breaching contract

4. Engaging in unauthorized practice

The correct answer is: Operating under apparent authority

A This choice is too general, as acting independently can refer to any action without the permission of others. C: Breaching contract is not the most accurate option, as it implies that a contract was already in place between the broker and the buyer. In this situation, the broker is negotiating without the buyer's permission, so there is no initial contract to breach. D: Engaging in unauthorized practice is also not the best option, as it is typically associated with professionals who do not have the necessary licenses or qualifications to practice in their field. While the broker may be engaging in unauthorized practice in a sense, it is not the most relevant term to describe their actions in this scenario. B: The correct answer. Operating under apparent authority refers to a situation where a person is acting on behalf of someone else based on the appearance of having authority to do so. In this case, the broker may be perceived to have the buyer's authority to negotiate, even though they do not actually have permission. This is why B is the most accurate and relevant option.