Agency
A NH buyer's representative agreement creates which type of agency relationship?
AGeneral agency
BSpecial (limited) agency for the specific transaction✓ Correct
CUniversal agency with unlimited authority
DImplied agency with no written documentation
Explanation
A buyer's representation agreement creates a special (limited) agency relationship—the agent is authorized to act on behalf of the buyer for the specific purpose of finding and negotiating the purchase of property. Unlike a general agent, the buyer's agent cannot bind the buyer to a purchase without authorization.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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