What is the primary difference between a special agency and a general agency?

The primary distinction between special agency and general agency lies in the scope of authority granted to the agent. In a special agency, the agent is authorized to perform specific tasks or activities on behalf of the principal, usually limited to a particular transaction. This means that the authority of the agent is strictly defined and does not extend beyond the specific duties assigned.

In contrast, a general agency grants the agent a broader scope of authority, allowing them to act in various matters on behalf of the principal over an extended period. This could include multiple transactions or ongoing management responsibilities.

The statement regarding power of attorney is relevant in that a special agent typically operates without the broad powers that a power of attorney might confer, as their authority is restricted to specific actions. Thus, recognizing that special agencies are typically defined by their limited authority is crucial in distinguishing them from general agencies.

Understanding these definitions helps clarify the nature of the relationship between the agent and principal, which is pivotal for anyone involved in real estate transactions or agency relationships.