scope of authority

scope of authority

The boundaries of an agent's ability to take actions in furtherance of the objectives of the agent's principal,or client.Those same boundaries will also impose liability on the principal if the agent does something wrongful,without knowledge or approval by the principal,but within the scope of the agent's authority.(1) In most states,a purchaser of real estate must take steps to determine the scope of the agent's authority to bind its client-seller; otherwise the purchaser deals with the agent at its own peril.(2) The owner of real estate may be liable if its sales or leasing agent engages in discriminatory or other wrongful conduct that is within the scope of the agent's authority. (3) The owner of real estate may be liable if the agent fails to disclose unsafe conditions known to the seller and the agent,but concealed by the agent from the buyer.