What is the exam-ready answer?
| Roadmap lesson | 90 of 500 |
|---|---|
| Official syllabus topic | Creation and Types of Agency |
| Official PSI area | Agency |
| Published area weight | 13% of the 100-question national portion |
| Exam portion | National salesperson portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
| Last verified | August 2, 2026 |
The Rule
PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.
Complete lesson
Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.
Creation
Express agency is stated orally or in writing, though brokerage representation agreements may require writing. Implied agency can arise from conduct, ratification from later approval, and estoppel from representations reasonably relied upon.
Scope of authority
A special agent handles a limited transaction or act. A general agent manages a series of matters, such as property management. Universal authority is exceptionally broad and typically created by a power of attorney.
Parties represented
A listing brokerage represents a seller or landlord, while a buyer- or tenant-broker agreement creates representation on the other side. Cooperating with another brokerage does not by itself decide agency.
Multiple-party structures
Dual agency represents both sides with informed consent and limited advocacy. Designated agency assigns different affiliated licensees where permitted. Subagency creates duties to another broker's principal.
Decision rule
Georgia-specific distinction
Worked example
Scenario. A broker has a written listing agreement authorizing marketing and negotiation for one property.
Reason it through. The seller is the principal, and the broker's authority is limited to the transaction and the agreement's terms.
Answer. The broker is a special agent representing the seller.
Common exam traps
- Assuming MLS cooperation creates subagency
- Treating a customer as a client
- Assuming one firm always means dual agency
- Creating implied representation through careless advice
Original practice questions with detailed explanations
These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1Which agent has limited authority for a transaction?
- A. Special agent
- B. Universal agent
- C. General agent
- D. Customer
Show answer and explanation →
Answer: A. Special agent
A real estate broker in a purchase or listing transaction is commonly a special agent.
Question 2What can create agency after an unauthorized act is approved?
- A. Ratification
- B. Escheat
- C. Novation only
- D. Foreclosure
Show answer and explanation →
Answer: A. Ratification
A principal's later approval can ratify the act and create agency consequences.
Question 3Does cooperation between brokers automatically create subagency?
- A. Yes
- B. No
- C. Only for leases
- D. Only if commission is shared
Show answer and explanation →
Answer: B. No
Agency depends on the governing agreements and disclosures, not cooperation or compensation alone.
Mastery tracking
Mark this lesson mastered only when every statement is true.
- State the direct answer and decision rule without notes.
- Explain every core concept in plain English.
- Solve the worked example after changing one important fact.
- Identify the Georgia distinction before reading answer choices.
- Answer all three questions correctly and reject every distractor.
- Repeat the topic in mixed practice on a later day.
Recommended next lesson
Continue with Brokerage Representation Agreements. Continue to roadmap lesson 91 and build on this decision rule.
Return to the Agency hub to see every official branch and the complete lesson sequence for this content area.