What governs usual or customary authority?

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Study for the UBC Real Estate Exam. Access flashcards and multiple choice questions with hints and explanations. Enhance your preparation and ensure success!

Multiple Choice

What governs usual or customary authority?

Explanation:
Usual or customary authority is defined by what is standard practice in the real estate industry. An agent acts within the scope that a reasonable broker would infer from market norms, standard agency forms, and regulatory rules. This means authority comes from the relationship and the shared expectations of the trade, not the agent’s personal ambitions, and not as an unlimited power. The principal can set specific limits or instructions, but absent those explicit directions, the agent’s authority aligns with what is typically permitted in the trade.

Usual or customary authority is defined by what is standard practice in the real estate industry. An agent acts within the scope that a reasonable broker would infer from market norms, standard agency forms, and regulatory rules. This means authority comes from the relationship and the shared expectations of the trade, not the agent’s personal ambitions, and not as an unlimited power. The principal can set specific limits or instructions, but absent those explicit directions, the agent’s authority aligns with what is typically permitted in the trade.

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