Tip of the Month - April, 2008

An Agent is either a general agent or a special agent, depending on the scope of the Agent’s authority. A general agent can act on behalf of the principal on a range of matters and can obligate the principal to any contracts signed by the agent that are within the scope of that agent’s duties. On the other hand, a special agent is only authorized to represent the principal on a specific matter or transaction. Once that transaction is concluded, the agency is terminated. A special agent has no authority to sign any contracts on behalf of the principal. A Property Manager is usually a general agent, because of the variety of tasks to be performed.