AgencyIntermediateCalifornia Exam

Which of the following best describes a 'special agent' in real estate?

AAn undercover investigator hired by the DRE, as commonly applied in brokerage relationships
BAn agent authorized to perform a specific act or transaction on behalf of the principalCorrect
CA broker who handles only luxury properties, consistent with typical listing agreement terms
DAn agent with power of attorney, per standard fiduciary practice in the industry

Why An agent authorized to perform a specific act or transaction on behalf of the principal Is Correct

Answer B: An agent authorized to perform a specific act or transaction on behalf of the principal

A real estate listing or buying agent is typically a special agent — authorized to perform a specific, limited task (listing or buying one property) rather than having broad authority over all of the principal's affairs.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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