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

What type of agent has authority over all of the principal's affairs?

1. General agent

2. Universal agent

3. Special agent

4. Limited agent

The correct answer is: Universal agent

The type of agent who has authority over all of the principal's affairs is known as a universal agent. This designation signifies that the agent is empowered to act on behalf of the principal in all matters concerning their legal, financial, and personal affairs, providing a wide-ranging authority that encompasses almost any aspect of decision-making. This can include transactions, legal representation, and general management functions. In contrast, a general agent typically has authority over a wider scope of activities but is still limited to a specific area or type of transaction, such as managing a property or conducting business on behalf of the principal. A special agent is authorized to act on behalf of the principal for a specific task or transaction, such as selling a particular piece of property, and does not possess broader authority. A limited agent operates with restricted powers and typically can only perform specific acts as outlined by the principal's instructions. Therefore, recognizing the distinct roles of these agent types clarifies why a universal agent holds authority over all the principal's affairs, setting it apart from the other classifications.