What is the difference between a general agent and a special agent in real estate?

The distinction between a general agent and a special agent is fundamentally rooted in the scope of authority each possesses. A general agent acts on behalf of the principal in a wide range of activities. This broad authority typically encompasses a variety of transactions and decisions in the principal's business dealings, allowing the agent to make decisions and take actions that align with the interests of the principal across different contexts.

In contrast, a special agent is restricted to specific tasks or a defined transaction, often leading to limited authority. For example, in real estate, a special agent might be appointed to handle the sale of a particular property, with authority limited solely to that transaction rather than an ongoing relationship involving multiple properties or dealings.

Understanding this distinction is crucial for both agents and clients in terms of expectations and the scope of the agent’s responsibilities. This insight clarifies why C is the correct answer, emphasizing that a general agent has broad authority while a special agent is limited to a specific set of tasks.