Real estate brokers operate under the law of agency, which gives a broker the right to act for a principal in trying to buy or sell a property. In the basic principal-agent relationship of real estate brokerage, real estate brokers act in the capacity of a:

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Real estate brokers operate as special agents, meaning they have limited authority to act on behalf of their client for a specific purpose (i.e. buying or selling a property). They are not authorized to make decisions on behalf of the client outside of the purpose of the agency agreement. A universal agent has broad authority to act on behalf of the principal for any and all purposes, while a general agent has authority to act for the principal within a specific area or scope of responsibility. An undercover agent is not relevant in the context of real estate brokerage.

Real Estate Brokers Operate Under the Law of Agency, Which