In real estate, a specific type of agency relationship can be established when a broker or agent is authorized to perform only a particular act, or handle a specific transaction, on behalf of a client. This arrangement grants limited authority; the agent’s power is confined to the explicitly defined task, and they cannot bind the client beyond the scope of that task. For instance, a property owner might engage a professional solely to find a buyer for their home, while retaining the authority to negotiate the sale terms directly.
This focused representation provides both advantages and safeguards. Clients retain greater control over their transactions and benefit from targeted expertise relevant to the precise service needed. Concurrently, it limits the agent’s responsibilities, reducing potential liabilities and allowing them to concentrate on fulfilling the singular objective. Historically, such limited agency agreements arose from a need for specialized services within the broader real estate market, ensuring accountability and clarity in the agent-client relationship.
