General agency occurs when the principal authorizes the agent to perform duties associated with the continued operation of the business such as property management.

Study for the Washington Real Estate Fundamentals Rockwell Exam. Utilize flashcards, multiple choice questions with hints and explanations. Prepare thoroughly for your real estate career!

Multiple Choice

General agency occurs when the principal authorizes the agent to perform duties associated with the continued operation of the business such as property management.

Explanation:
General agency is defined by authority to handle a range of duties necessary to operate a business on an ongoing basis. In property management, the principal authorizes the agent to manage day-to-day tasks like collecting rent, coordinating maintenance, leasing, and other ongoing decisions. That ongoing delegation of authority is what characterizes general agency. The other perspectives don’t fit as well: a single-task arrangement describes a special (limited) agency, not general agency; being limited to one property is a narrow scope that doesn’t capture the ongoing operations aspect; and licensing is about legal qualification to practice, not the breadth of the agency relationship.

General agency is defined by authority to handle a range of duties necessary to operate a business on an ongoing basis. In property management, the principal authorizes the agent to manage day-to-day tasks like collecting rent, coordinating maintenance, leasing, and other ongoing decisions. That ongoing delegation of authority is what characterizes general agency.

The other perspectives don’t fit as well: a single-task arrangement describes a special (limited) agency, not general agency; being limited to one property is a narrow scope that doesn’t capture the ongoing operations aspect; and licensing is about legal qualification to practice, not the breadth of the agency relationship.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy