If a broker negotiates a sale on behalf of a buyer without permission, what is this called?

The scenario described involves a broker negotiating a sale on behalf of a buyer without that buyer's permission. This situation aligns with the concept of "Apparent Authority." Apparent authority occurs when a third party reasonably believes that an agent has the authority to act on behalf of a principal based on the principal's representations or behavior, even if the agent does not have actual permission to act in that capacity.

In this context, if the broker negotiates on behalf of the buyer without explicit permission, the buyer may be seen as conveying a form of authority based on their prior actions or the relationship established. However, since the broker did not have permission, the authority is not legitimate in terms of actual authority. Therefore, the broker's actions would be categorized as an example of apparent authority, highlighting the discrepancies between perceived power and actual consent in agency relationships.

Understanding this distinction is essential for those in real estate, as it underscores the importance of clear communication and defined authority in transactions to avoid misunderstandings and potential disputes.