Question

Real estate brokers operate under the law of agency, which gives a broker the right to act for a principal in trying to buy or sell a property. In the basic principal-agent relationship of real estate brokerage, real estate brokers act in the capacity of a
A. Universal agent
B. General agent
C. Special agent
D. Under-cover agent

Answer 1

Answer: (C) Special agent

Explanation:

Special agent in real state is known as the authorized agent as they perform various types of functions related to the transaction. The broker in the real estate is one of the example of the special agent in an organization.

The special agent is performing only specific duties that are assigned by the manager and they always maintain relationship with the customer.

Therefore, the brokers of the real estate always act in the capacity of the special agent.