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

Which type of agent has limited authority to manage affairs in specific areas?

1. Universal agent

2. General agent

3. Special agent

4. Restricted agent

The correct answer is: General agent

The type of agent that has limited authority to manage affairs in specific areas is known as a special agent. A special agent is typically given authority to act on behalf of a principal for a specific purpose or task, often in a limited time frame or for a particular transaction. This agent operates within the constraints of the specific duties assigned, such as selling a particular property or negotiating a specific contract, without the broader responsibilities that a general agent would have. In contrast, the general agent has a broader scope of authority to act on behalf of the principal in various matters, which can encompass multiple transactions and ongoing responsibilities. The universal agent has even greater authority, often able to act on behalf of the principal in all matters, while the concept of a restricted agent is not a standard classification in agency law.