Ostensible
We call a concept ostensible when, at first sight, it appears to be accurate or valid. However, upon closer inspection, it proves to be a half-truth or completely false. For instance, Dale calls Harry, his childhood friend, to seemingly check in for old times’ sake. The truth, however, is that Dale wanted to convince Harry to work for him in an MLM system. Dale’s reason was ostensible as apparent.
An agent can also be ostensible. Superficially, a person might have the necessary authority or jurisdiction in a particular matter. Moreover, their physical appearance (for example, their uniform) and conduct may indicate a certain degree of control. Their authority, however, vanishes at fact-checking. After all, the definition of the term ‘ostensible’ comes down to a discrepancy between an implied idea and reality.
What does ostensible mean in terms of the law?
In law, one dealing with the agent may reasonably rely on the apparent representations.
In other words, apparent in legal terms describes the false impression of having the authority to act as a genuine agent on a client’s behalf.
Assume the principal instructs their local real estate agents not to sell a house for less than $200,000. If they sell it for $175,000 to a buyer who has reason to rely on the agent’s actions, they will legally transfer the property. The principal may bring legal charges against and sue the real estate broker for breach of contract.
Ostensible in terms of real estate
As pointed out earlier, a realtor can seemingly assume authority and act on behalf of an agency. However, the agent doesn’t have authority on this matter.
A real estate transaction presupposes several participants. One of them can easily be perceived as an apparent agent. When you don’t have enough information available, you may jump to the reasonable conclusion that one of the parties is, by definition, an ostensible agent.
Such misunderstandings may result in civil lawsuits between house sellers and buyers and liability claims against brokers and realtors. To avoid the so-called ostensible agency liability, all parties involved should demonstrate their relationship and authority with every participant. Full disclosure of present parties should be the foundation stone for the trust between a realtor and a client!
Ostensible agency
Let’s consider Jack an independent service provider, not an employee at a significant real estate agency, such as the game-changer RealEstateAgent.com. Because he wears the company’s badge, a third party is led to believe Jack represents the agency. Jack, therefore, becomes an ostensible agent. We cannot rely upon his input, and his information may not be adequate in this context.
Real-life examples
We often encounter ostensible agency in everyday life, similar to apparent authority. Typically, a person acting as an ingenuine agent will have powerful consequences. A third party will believe an ostensible agent’s apparent authority. Thus, the third party doesn’t know the relationship between the ostensible agent and the individual or agency assumed to be the client.
Also, the definition of an 'ostensible agency' applies to the following scenario. A client hires an agency or contractor to provide them with a service. However, the company delegates a subcontractor to the customer. As the subcontractor knows the assignment’s nature and doesn’t tell the truth to the client, the customer will believe that they are dealing with a genuine contractor. The subcontractor is an ostensible agent to the contractor.
Popular Real Estate Terms
The continued and illegal occupancy of property after a legal period of occupancy has expired. In an estate at sufferance the tenant occupies the property at the sufferance of property ...
Traditional style borrowed from the British Georgian architecture in the American colonial period. Colonial architecture usually has two stories emphasizing window detail and shutters. ...
In the real estate industry, several professional designations can be awarded to real estate professionals. These professional designations provide real estate professionals with the ...
Ownership of property by two or more people in undivided interests, without the right of survivorship. Each coowner's interest may be conveyed separately by its owner. Tenancy in common ...
The definition of abatement is a reduction of penalties or a tax deduction for individuals or businesses. It can often be accessed upon an overpayment of taxes, if the company or individual ...
Portion of a deed that states the act and date of the transfer of the property. ...
An interim or provisional court decree, which is not final and can be reversed or amended, normally issued to direct additional proceedings prior to issuing a final decree. For example, an ...
A knowledgeable person authorized to aid in the underwriting of property and casualty insurance. ...
A written document terminating the terms of a lien through payment of all financial obligations. A lien release is given by the lienor, the one holding the lien, to the lienee, individual ...

Have a question or comment?
We're here to help.