Which agency term describes the arrangement where the broker represents the seller under a listing?

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

Answer: (C)

The arrangement tested here is a special agency. When a seller signs a listing, the broker is appointed to act on behalf of the seller for the specific task of selling that property in that transaction. The broker has authority to market the property, present and negotiate offers, and otherwise handle the sale within the scope of the listing, but this authority is limited to this particular transaction. It’s different from general agency, where the agent would handle a broader range of the principal’s affairs; universal agency, which would give the agent authority over almost all aspects of the principal’s life; and dual agency, which involves representing both the seller and the buyer in the same transaction.