Hawaii Pre-Licensing National Practice Exam

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Prepare for the Hawaii Pre-Licensing National Exam. Study with flashcards and multiple choice questions, each question provides hints and explanations. Get ready for success!

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A broker typically serves as which type of agent?

General agent
Special agent
Universal agent
Designated agent

The correct answer is: Special agent

A broker typically functions as a special agent in real estate transactions. This designation means that the broker represents the principal (the client) in specific transactions or dealings, such as the sale or leasing of a property. The scope of a special agent's authority is limited to specific tasks defined by the principal, and the broker does not have the authority to make broad decisions on behalf of the client outside of the agreed-upon actions. This differs from a general agent, who would have more extensive authority to act on behalf of a principal in a variety of matters, or a universal agent, who can perform any act within the power of the principal. Designated agents are a specific type of agent assigned to represent a particular client in a transaction but still fall under the broader category of special agents. Thus, identifying the broker as a special agent highlights the specific and limited nature of the authority granted to them within real estate transactions.