Wisconsin Real Estate Sales Practice Exam 2026 – Complete Prep Guide

The correct answer is general agency. In real estate, a general agency relationship allows agents to represent a principal in a range of transactions over time, rather than a single, specific transaction. This type of agency grants the agent a broader scope of authority to act on behalf of the principal across multiple dealings, which can include managing properties, negotiating leases, or facilitating sales, among other tasks.

General agency is distinctive because it involves an ongoing relationship where the agent has some level of discretion and authority in their dealings. This contrasts with a special agency, where the agent is typically limited to a specific task or transaction, such as listing a property for sale. Express agency pertains to an explicitly stated agreement between the principal and agent, which can be either general or special. Sub agency involves a situation where another agent acts on behalf of the original agency, thus it does not inherently indicate representation across multiple transactions.

Understanding the traits of general agency is crucial for real estate professionals as it shapes the expectations and authority levels between agents and their clients.