What type of authority allows a broker to act on behalf of a client based on the client's conduct?

The correct answer is based on the concept of apparent authority, which allows a broker to act on behalf of a client when the client's conduct suggests to a third party that the broker has the authority to do so. This type of authority is established when a client’s actions or statements lead others to believe that the broker has the necessary authority to engage in specific transactions.

For example, if a client permits a broker to negotiate on their behalf or engages in behaviors that imply that the broker is authorized to act, a third party may reasonably assume that the broker has the authority to perform certain actions related to the client’s interests, even if that authority has not been expressly granted.

In contrast, express authority is when a client explicitly grants authority to the broker, usually through a written agreement. Implied authority occurs when a broker has the authority to act in ways that are necessary to carry out their responsibilities even if those specific actions are not directly stated. Since apparent authority hinges on the perception created through a client's conduct rather than explicit permission or inferred actions, it is the most fitting answer in this context.