CHAPTER
1
Understanding General Agency in Real Estate
A general agent in real estate is a professional authorized by a principal (typically a property owner) to handle a broad range of ongoing tasks and transactions within a specific area of business. Unlike a special agent who is limited to one task, a general agent has continuous authority to act on behalf of the principal. The most common example is a property manager who handles rentals, maintenance, tenant relations, and financial reporting on an ongoing basis.
CHAPTER
2
General Agent Definition and Scope
A general agent has broad authority to perform multiple acts within a defined scope on behalf of the principal. This authority is typically established through a written management agreement or power of attorney. The key distinction is that a general agent can bind the principal in dealings with third parties within their authorized scope. For example, a property manager can sign leases, hire contractors, and collect rent without getting individual approval for each action.
CHAPTER
3
Three Types of Agency in Real Estate
Special Agents handle a single transaction, like a listing broker hired to sell one property — the relationship ends when the transaction closes. General Agents have broad, ongoing authority within a specific area, like a property manager handling all aspects of a rental portfolio. Universal Agents have complete authority over all the principal's affairs and are rare in real estate, typically requiring a comprehensive power of attorney.
CHAPTER
4
Fiduciary Duties of a General Agent
General agents owe the same fiduciary duties as any agent: Loyalty (putting the principal's interests first), Obedience (following lawful instructions), Disclosure (reporting all material information), Confidentiality (protecting private information), Accounting (properly managing funds and providing financial reports), and Reasonable Care (using professional skill and diligence). These duties are ongoing throughout the agency relationship.
CHAPTER
5
Real-World Examples of General Agents
A property management company managing a portfolio of rental properties is the most common general agent. A real estate brokerage managing broker overseeing all office transactions acts as a general agent for the brokerage owner. A corporate real estate director managing all property acquisitions for a company is another example. In each case, the agent has broad, continuous authority within a defined scope.
CHAPTER
6
General Agent vs Special Agent
A special agent is hired for a specific, limited transaction. When you hire a real estate agent to sell your home, they are a special agent — their authority is limited to marketing and facilitating the sale of that one property. A general agent, by contrast, has ongoing authority for multiple transactions. When you hire a property management company, they handle leases, maintenance, rent collection, and tenant relations continuously across all your properties.
CHAPTER
7
Agency Questions on the Real Estate Exam
Agency classification is a heavily tested topic on every state licensing exam. Remember: Special agents handle one transaction (most real estate agents), General agents handle ongoing business (property managers), and Universal agents handle everything (rare, requires full power of attorney). Focus on understanding the scope of authority for each type and the fiduciary duties that apply to all agency relationships.
