What type of agent acts on behalf of the principal in a limited capacity, focusing on specific tasks?

Prepare for the North Carolina Broker Reciprocal Exam. Sharpen your skills with flashcards and multiple-choice questions. Each question offers explanations to ensure clarity and understanding. Get ready to excel!

A special agent acts on behalf of the principal in a limited capacity, typically focusing on specific tasks or transactions. This role is characterized by the fact that the special agent is given authority to perform a particular activity, such as selling a property, and does not have broad powers that encompass a variety of actions or decisions. This limitation of authority is essential to differentiate special agents from other types of agents.

In contrast, a universal agent has the authority to act on behalf of the principal in almost all matters, a general agent represents the principal in a broad range of activities related to a particular business or enterprise, and a designated agent is someone assigned by a broker to represent a client in a specific transaction. These roles signify varying degrees of authority and scope of responsibilities, highlighting why the special agent's limited focus sets it apart and makes it the correct answer.

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