Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

In terms of agency relationships, what does the term 'general agency' imply?

1. It covers specific one-time transactions.

2. It involves ongoing relationships for multiple transactions.

3. It requires exclusive representation of one party.

4. It limits the agent's authority considerably.

The correct answer is: It involves ongoing relationships for multiple transactions.

The term 'general agency' implies an ongoing relationship for multiple transactions. In a general agency, the agent is authorized to act on behalf of the principal in a broader scope of activities rather than in a confined or specific one-time transaction. This type of agency allows the agent to make decisions and take actions that benefit the principal across various dealings, which is essential in contexts like property management or ongoing business representations. The general nature of this relationship means that the agent has the ability to carry out multiple tasks and responsibilities within the defined parameters provided in the agency agreement. While it does not limit the agent's authority considerably (as might be suggested by another choice), it establishes a framework where the agent must operate in the best interest of the principal, allowing for flexibility and continuity throughout the duration of the agency agreement.