National Real Estate Practice Exam

A real estate broker functions primarily as what type of agent?

1. General Agent

2. Special Agent

3. Broker-in-Charge

4. Transaction Coordinator

The correct answer is: Special Agent

A real estate broker primarily functions as a special agent, which is significant for several reasons. Special agents are authorized to perform specific tasks while acting on behalf of a client, typically within a limited scope defined by the client’s wishes, such as selling a property or negotiating a purchase agreement. This contrasts with general agents, who are granted broader powers to act in various areas on behalf of a client. The role of a real estate broker often requires them to conduct negotiations, assist in property marketing, and manage specific transactions, all of which fit the definition of a special agent. The relationship is characterized by a fiduciary duty, meaning that the broker must act in the best interest of their client throughout the process. In considering other roles, a broker-in-charge is a designation for a licensed broker responsible for managing a real estate firm but does not necessarily influence the agent-client relationship directly. Similarly, a transaction coordinator typically handles administrative tasks during a real estate transaction rather than representing clients in negotiations or making decisions on their behalf, further distinguishing those roles from that of a special agent.