How many types of agents are generally recognized?

The correct answer is that three types of agents are generally recognized in the context of real estate. These types are commonly classified as:

1. Universal Agents: This type of agent is authorized to act on behalf of the principal in a wide range of matters, allowing them to make decisions across various transactions, including real estate matters. They hold broad authority and can act fully in the principal's stead.

2. General Agents: General agents have the authority to act on behalf of the principal in specific areas or conduct specific transactions. For example, a property manager typically operates as a general agent, managing properties and executing tasks in the interest of the property owner.

3. Special Agents: Special agents are appointed for specific tasks and have limited authority. A real estate salesperson, for example, typically serves as a special agent, authorized to perform certain tasks, such as selling a property, but without broader powers.

This three-tier classification helps define the scope and limitations of the agent's authority and the nature of their relationship with the principal. Understanding these distinctions is crucial for real estate professionals as they navigate their responsibilities and duties.