Under what condition can a seller of a property remain liable for agent actions?

The correct answer revolves around the concept of the "warranty of authority," which pertains to the responsibilities and legal obligations that a seller has in a real estate transaction. The warranty of authority refers to the assurance that the agent has the right to act on behalf of the seller in dealings related to the property.

When a seller grants an agent the authority to act on their behalf, they implicitly allow the agent to make representations, negotiate, and execute transactions related to that property. If the agent exceeds their authority, or if the seller does not properly inform the agent of certain limitations or conditions, the seller can remain liable for the agent's actions. This is crucial because it establishes that the seller's accountability is linked to the trust and permission given to the agent to represent them in the transaction.

On the other hand, misrepresentation of the property, being part of the transaction, or informing the agent doesn't necessarily maintain the same level of responsibility as the warranty of authority. Misrepresentation may lead to liability, but that is more about the agent's actions rather than the warranty. Similarly, merely being part of the transaction is not a condition that guarantees seller liability, and notifying the agent alone does not equate to a shared liability unless there is a breach of authority