Agency by ratification refers to a situation in which a principal, typically a property owner or a party in a real estate transaction, explicitly or implicitly approves and accepts the actions of an agent performed on their behalf, despite the agent initially lacking the necessary authority. The principal’s confirmation of the agent’s actions creates a legally binding agreement, and the agent’s actions are considered valid as if they were initially authorized.
Related real estate terminology:
Principal
Agent
Fiduciary duty
Implied agency
Ostensible agency
Express authority
Ratification
References:
- National Association of Realtors – Glossary of Real Estate Terms.
- Real Estate Express – Real Estate Glossary.
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