A real estate agent has assisted an investor with the purchase of a number of commercial properties. The investor will be out of the country for part of the year and asks the agent to manage all aspects of the properties including advertising and leasing. The real estate agent will be an:

• A. General agent
• B. Special agent
• C. Universal agent
• D. Subagent

Answer: (A)

The level of authority in agency relationships determines what an agent can do on behalf of a principal. When someone is entrusted with ongoing tasks for a business or portfolio, the appropriate relationship is a general agent—someone authorized to perform all acts connected with a particular business or employment. In this scenario, the investor is away and relies on the agent to handle day-to-day operations across multiple properties, including advertising and leasing. That requires broad, continuing authority over the property management activities, which fits a general agent.

A universal agent would have power to do anything the principal could do in any area of life, which is far broader than needed for property management. A special agent is limited to one specific task or transaction, not to ongoing management. A subagent is someone the primary agent hires to help carry out duties; the core relationship, however, is still between the principal and the general agent who holds the authority to manage the business.