When a broker signs a listing agreement with a seller, what type of agency is most commonly created?

• A. General agency
• B. Universal agency
• C. Special agency
• D. Dual agency

Answer: (C)

When a seller signs a listing, the broker is given authority to act on behalf of the seller for a specific transaction involving that property. This setup creates a special agency: the broker’s duties and powers are limited to preparing, marketing, showing the property, evaluating offers, and negotiating terms for that particular sale. It is transaction‑focused and does not grant broad, ongoing authority over other matters.

General agency would imply broader rights to handle many unrelated affairs for the principal, which isn’t what a listing provides. Universal agency is even broader and not typical in real estate. Dual agency refers to representing both sides in the same transaction; this can happen but is not the default result of a listing and requires separate consent due to potential conflicts of interest.

So, the most common type of agency created by a listing agreement is a special agency.