Exceeding the limits of the authority granted is a major risk in?

The major risk of exceeding the limits of the authority granted is particularly prominent in the fulfilling of listing agreements. When a real estate professional represents a seller through a listing agreement, they are provided a specific scope of authority to act on behalf of the seller. If the agent exceeds this authority—such as by making decisions or commitments that the seller has not authorized—they could cause legal and financial complications both for themselves and the seller. Unauthorized actions could lead to liability issues, disputes, and even lawsuits, as they would not be acting within the parameters established by the agreement.

In contrast, while the development of policy manuals, complying with fair housing laws, and cooperating with brokers from other firms all have their respective challenges and risks, they do not inherently involve an agent surpassing explicit limitations of authority granted by a client in the same way that listing agreements do. The specific nature of a listing agreement necessitates adherence to the authority set forth, making it critical for real estate professionals to understand the boundaries of their role to safeguard against potential repercussions.