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

What distinguishes a universal agent from other types of agents?

1. Limited authority in specific areas

2. No authority in any real estate dealings

3. Complete authority over all affairs of the principal

4. Authority in business transactions only

The correct answer is: Complete authority over all affairs of the principal

A universal agent is distinguished by having complete authority over all affairs of the principal, which means that this type of agent can make decisions and act on behalf of the principal in virtually any situation. This broad scope of authority allows the universal agent to handle a wide range of matters, not just those related to real estate transactions. This is significant because it sets the universal agent apart from other types of agents, such as general agents or special agents, who have limited authority and can only act in specific areas or for particular transactions. For example, a general agent might manage a rental property, but their authority would not extend beyond that specific function to cover all aspects of the principal's financial affairs. Similarly, a special agent is usually authorized to perform a specific task or transaction, like selling a single property. The comprehensive power bestowed upon a universal agent is ideal for individuals who may prefer delegating extensive responsibilities to a trusted representative in various aspects of their personal or business life.