Real Estate · Brokerage Management

What is the difference between a general agent and a special agent in real estate?

Correct answer

A general agent has authority to handle a range of matters for the principal on an ongoing basis (like a property manager); a special agent is authorized to handle a specific task (like a listing broker hired to sell one property)

  1. A There is no difference
  2. B A general agent has authority to handle a range of matters for the principal on an ongoing basis (like a property manager); a special agent is authorized to handle a specific task (like a listing broker hired to sell one property)
  3. C A general agent works for free
  4. D A special agent has more authority

Why this is the answer

AGENCY SCOPE — GENERAL vs SPECIAL AGENT: GENERAL AGENT: Authorized to handle a RANGE of matters and act for the principal on an ongoing/continuous basis within a particular business; e.g., a PROPERTY MANAGER who handles many aspects of managing a property over time; a broker's salespeople are general agents of the broker; SPECIAL AGENT: Authorized to handle a SPECIFIC task or single transaction with limited authority; e.g., a LISTING BROKER hired to find a buyer for one specific property — limited to that task; UNIVERSAL AGENT: Broad authority to act in all matters (e.g., power of attorney); RELEVANCE: The scope of authority determines what the agent can legally do on the principal's behalf and the principal's liability for the agent's acts; in real estate, the typical listing or buyer broker is a SPECIAL agent (limited to the specific transaction), while a property manager is a GENERAL agent; understanding agency types and scope of authority is important broker-level knowledge tested on the national exam.
Source: Real Estate Broker National — Agency, General vs Special Agent

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