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

Which type of agency is established for a specific transaction where the agent is the broker?

1. General agency

2. Special agency

3. Dual agency

4. Exclusive agency

The correct answer is: Special agency

The correct choice is special agency, which is characterized by its focus on a specific transaction or task. In special agency relationships, the agent, acting as the representative of the principal (typically the broker), is granted limited authority to perform a particular act. This type of agency is commonly seen in real estate transactions, where the broker is empowered to facilitate the sale or lease of a specific property. Understanding the premise of special agency clarifies its application; it exists solely for the purpose of executing one specific transaction. The agent does not have the authority to conduct ongoing business or represent the principal in other matters outside that particular transaction, distinguishing it from general agency, which encompasses a broader scope of authority. In the context of real estate, the special agency reflects a defined relationship, ensuring that the agent's role is focused and effective for the designated assignment, while maintaining a clear scope of responsibilities aligned with the broker's objectives in that particular transaction.