An individual authorized under agency law to execute a single act; brokers are considered special agents.

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Multiple Choice

An individual authorized under agency law to execute a single act; brokers are considered special agents.

Explanation:
In agency law, the breadth of an agent’s authority defines their role. A broker hired to handle a specific real estate transaction is a special agent. Their power is limited to that one act—finding a buyer or seller, negotiating terms, and guiding the deal to closing. They don’t have authority to manage all of the principal’s affairs or to act beyond the particular transaction unless given broader authorization. This limited scope contrasts with a general agent, who can handle a wider range of tasks for the principal, and a universal agent, who can perform almost any act the principal could. A subagent is someone the agent hires to help carry out duties, still acting for the principal under the agent’s direction. So describing brokers as special agents fits the concept of authority restricted to a single act or transaction.

In agency law, the breadth of an agent’s authority defines their role. A broker hired to handle a specific real estate transaction is a special agent. Their power is limited to that one act—finding a buyer or seller, negotiating terms, and guiding the deal to closing. They don’t have authority to manage all of the principal’s affairs or to act beyond the particular transaction unless given broader authorization. This limited scope contrasts with a general agent, who can handle a wider range of tasks for the principal, and a universal agent, who can perform almost any act the principal could. A subagent is someone the agent hires to help carry out duties, still acting for the principal under the agent’s direction. So describing brokers as special agents fits the concept of authority restricted to a single act or transaction.

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