March 25, 2025
In real estate, agency representation defines the working relationship between an agent and their client. An agent is a professional authorized to act on behalf of a client during property transactions, owing important fiduciary duties: loyalty, confidentiality, and full disclosure. These obligations make sure the client’s best interests stay front and center. Understanding the scope of an agent’s authority is also key, as it shapes the agent’s responsibilities and what they can do for their client. In this post, we’ll explore the three main types of agency representation—universal, general, and special—and consider how each one operates during property transactions.
First, let’s look into the universal agent, which holds the broadest authority in real estate representation. Empowered by a power of attorney, a universal agent can act in virtually any matter on behalf of the client. This includes making major decisions, signing contracts, and managing financial transactions, mirroring the client’s own legal capacity.
Because this level of authority requires a high degree of trust, universal agents are not very common. Most clients are uneasy about granting so much power unless there is a convincing reason—such as health issues or lengthy absences—preventing them from handling their own affairs.
Unlike the universal agent, a general agent manages ongoing responsibilities in a particular area of the client’s affairs. A good example is a property manager. These professionals oversee the day-to-day tasks of a property, including leasing, maintenance, and rent collection.
By covering multiple aspects of property oversight—managing tenants, arranging repairs, and making sure finances are in order—a general agent needs strong organizational and people skills. This role is important for keeping investments profitable and well-maintained, but it doesn’t match the extensive authority given to a universal agent.
Next, the special agent role narrows authority to a single transaction. In real estate, this typically involves handling the purchase or sale of a property. A special agent’s authority begins when the transaction starts and ends as soon as the deal is finalized.
Real estate agents frequently serve as special agents—researching market conditions, guiding negotiations, preparing paperwork, and making sure all contractual duties are fulfilled. Since a special agent’s responsibilities end when the transaction is complete, their energy is focused on providing expert service for that specific purchase or sale.
Whether you’re a universal, general, or special agent, remembering the scope of your authority is important for maintaining client trust and complying with legal requirements. Each role comes with unique responsibilities and limits that protect client interests and meet fiduciary duties. By clearly defining your authority, you can build stronger client relationships and deliver services suited to a range of property needs.