Texas Real Estate Sales Agent ExamContractsMedium
A property manager enters into an agreement with an owner to manage a multi-family apartment complex. The agreement includes provisions for collecting rent, handling maintenance requests, and negotiating new leases on behalf of the owner. Which of the following best describes the property manager's agency relationship with the owner?
- ASpecial Agent
- BDesignated Agent
- CUniversal Agent
- DGeneral Agent
Show answer & explanationAnswer & explanation
Correct answer: D. General Agent
A general agent is authorized to represent the principal in a broad range of matters related to a particular business or activity. Property managers typically act as general agents because they handle ongoing, diverse aspects of property operation for the owner.
Why the other options are wrong
- A. A special agent is authorized to perform a specific act or transaction, such as a real estate broker listing a property.
- B. A designated agent is a licensee authorized by a broker to act as an agent for a specific client in an in-house transaction.
- C. A universal agent has full authority to act on behalf of the principal in all matters, which is very rare and requires a power of attorney.
General Agent
An agent authorized to perform a broad range of acts in connection with a particular business or activity for the principal, but not all matters.
- Examples include property managers and business managers.
- Has ongoing authority.
- Can bind the principal in matters related to the specific business.
Memory trick: U.G.S. - Universal, General, Special describe the scope of agent power.