An agent given broad authority to handle all of a principal's affairs.
Why Universal Agent matters on the exam
This term belongs to Agency. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Universal Agent
Every Freehold question shows why the right answer is right — and cites its source.
A broker hired under a listing agreement to sell one property is typically what kind of agent?
A universal agent
A general agent
A special agent
A designated principal
Show answer & explanation
A special agent — A special agent is authorized to perform one specific transaction for the principal, which is exactly what a listing agreement creates. A general agent handles a range of ongoing matters, like a property manager.
Source: PSI National Real Estate Exam Content Outline §5 General Principles of Agency
A universal agent is best described as an agent who:
Is authorized to handle one specific transaction only, such as a single listed sale
Only represents institutional lenders in commercial mortgage transactions
Cannot bind the principal to any contract without obtaining separate written authorization for each individual act undertaken
Has broad authority to act on the principal's behalf in essentially all matters, such as under a general power of attorney
Show answer & explanation
Has broad authority to act on the principal's behalf in essentially all matters, such as under a general power of attorney — A universal agent has the broadest scope of authority, typically granted through an instrument like a general power of attorney, allowing the agent to act for the principal in virtually all matters.
Source: PSI National Real Estate Exam Content Outline §5 General Principles of Agency
A property manager authorized to handle leasing, maintenance, and rent collection for an owner's building on an ongoing basis is classified as a:
Special agent
General agent
Universal agent
Designated agent
Show answer & explanation
General agent — A general agent holds continuing authority to act for the principal across a series of transactions, which is exactly the scope of an ongoing property management engagement, unlike a special agent's authority limited to one transaction.
Source: PSI National Real Estate Exam Content Outline §5 General Principles of Agency
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