Definition of "What is a general agent?"

When you hear someone referring to a real estate agent type as a “general agent”, it might seem that someone is calling that agent “basic”, common. Right? But the truth is that general agent is a term that can refer to two other different situations and classifications an agent finds himself into.

The first general agent definition basically deals with liability.

But to understand what is a general agent in the liability sphere, one must understand its counterpart: the special agent.

Here’s the thing: don’t real estate agent have a number of listing agreements they can celebrate with home sellers? An exclusive agency, exclusive rights to sell, open listing… Well,  those real estate agents also have to deal with two types of relationships with the principal broker she will go about things freely, with the principal broker having almost no authority to bind the real estate agent; that agent is referred to as a special agent. What does that mean in practical terms is that – should anything go sour – the real estate agent takes the blame and not the principal broker. The broker’s responsibility is limited to whatever it is in their contract that he or she is responsible for – like listing the home on the Multiple Listing Service (MLS), marketing the property etc. But, concerning the rest, the special agent is the one who replies to.

Which leads us to the question of what is a general agent in the realm of liability and misrepresentation with a client.

A general agent is the opposite of everything we’ve talked about so far. With a general agent, the broker is always responsible for anything that happens. It’s very much like the general agent is sponsored by the broker and works on his behalf: the person with not only the fiduciary responsibility but all responsibilities in connection with the client is the principal broker and not the agent.

Alright, now let’s answerwhat is a general agent under another lens.

One referring to a general agent might also be commenting on the area of work and power of attorney of that real estate agent concerning his client. To this classification of general agent, its counterpart is the universal agent, a “unicorn” who has the rare power of attorney to act on behalf of the client with full power on just about every aspect of the game. He can sign legal documents, purchase and sell land for them.

Meanwhile, the general agent is the most common type, a real estate agent that has limitations to the areas where he has freedom. The general agent must have written or clear verbal confirmation of the home seller (or home buyer) to do things like make or accept an offer on a house etc.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Questions

Popular Real Estate Glossary Terms

Property owned and held jointly and equally shared by each spouse. It is purchased during their marriage, regardless of the wage-earning situation of either spouse. A spouse may not make a ...

Unable to sell an investment to obtain cash in the short-term without incurring A significant loss. Real Estate is typically not liquid because of the inability to sell property to raise ...

Blockbusting is a despicable and illegal racist business practice. Here’s how Blockbusting happens: a real estate agent, or someone posing as one, comes to a homeowner and instills ...

Ability of a large group of retail stores or shopping center to take business away from other smaller or more distant shopping stores. ...

A real estate professional’s job is to represent their seller’s or buyer’s best interest in a real estate transaction through an agency relationship. This means that the ...

Court order to seize and sell property because of the nonpayment of taxes, or foreclosure of property. ...

Money set aside for a possible loss, such as from a fire. ...

Portion of a construction loan withheld by a lender from a contractor until all construction work is satisfactorily completed or sufficient space is rented in a floor loan. The holdback ...

An actual location’s elevation defines the height or space below or above an established reference point. We call this point geoid, a math model of our planet’s sea level. ...