What can an agent engage in when they have inherent authority?

When an agent has inherent authority, they are empowered to engage in actions that are accepted as common practice within the realm of their professional duties. Inherent authority refers to the ability granted to an agent through the nature of their role, allowing them to perform tasks that are customary in the conduct of their work without the need for explicit consent for every action.

For instance, in real estate, it is common for agents to negotiate terms on behalf of their clients, present offers, and make decisions related to marketing strategies. These actions are typically seen as standard practices that support the fiduciary responsibilities agents have towards their clients.

Engaging in actions that are accepted as common practice implies that the agent is working within the scope of what is considered normal and appropriate in their profession. This includes acting in a way that aligns with industry standards and practices, providing a framework of trust and professionalism.

In contrast, adjusting listing prices automatically, taking over transactions without approval, or negotiating commissions without consent fall outside the limits of standard operations and could potentially lead to breaches of trust, ethics, or contractual obligations. These actions typically require explicit prior agreement or detailed discussion with the client to ensure alignment with their interests.