New York Real Estate Salesperson ExaminationLaws of AgencyMedium
A buyer's agent shows a property to their client. The client expresses strong interest but indicates they need to sell their current home first, which is not yet listed. The agent suggests writing an offer contingent on the sale of the client's current home. What type of agency relationship is illustrated when the agent provides this strategic advice?
- ASpecial agency
- BGeneral agency
- CDesignated agency
- DUniversal agency
Show answer & explanationAnswer & explanation
Correct answer: A. Special agency
A special agent is authorized to perform a specific act or transaction, such as securing the purchase of a property. Providing strategic advice related to that single transaction falls within the scope of a special agent's duties.
Why the other options are wrong
- B. General agency involves ongoing business relations (e.g., property manager), not a single transaction.
- C. Designated agency is a form of dual agency where different agents in the same firm represent opposing parties.
- D. Universal agency grants broad authority for all matters, which is not the case here.
Special Agency
An agency relationship where the agent is authorized to perform a specific act or transaction for the principal, with limited authority.
- Most common type of agency in real estate brokerage.
- Agent's authority is limited to the specific task (e.g., selling a house, finding a buyer).
- Does not grant broad decision-making power to the agent.
Memory trick: U.G.S.D. are the agent's many roles, you see.