National Real Estate Exam (PSI)General Principles of AgencyEasy
A homeowner hires a real estate broker solely to sell one specific property. The broker has no authority to handle any of the owner's other business or property matters. What type of agency relationship is this?
- ASpecial agent
- BGeneral agent
- CUniversal agent
- DSubagent
Show answer & explanationAnswer & explanation
Correct answer: A. Special agent
A special agent is authorized to handle only a specific, limited transaction, such as the sale of one property. Most listing brokers act as special agents.
Why the other options are wrong
- B. A general agent has authority over a range of ongoing matters, not just one deal.
- C. A universal agent has broad authority over nearly all of the principal's affairs.
- D. A subagent works for the original agent's principal but is a different concept entirely.
Special Agent
An agent given limited authority to perform a single, specific act or transaction for the principal.
- Most listing agents are special agents
- Authority is narrow and transaction-specific
- Contrast with general and universal agents
Memory trick: Special = Single deal