What type of agency involves one person working for another, typically in a professional capacity?

The correct answer is a general agent, which refers to a type of agency relationship where one person, the general agent, is authorized to act on behalf of another, typically in a professional or business-related context. This type of agency is extensive and can encompass a range of responsibilities and tasks that the general agent is expected to handle continuously over time. For example, in real estate, a property manager who oversees all aspects of a property is considered a general agent because they have broad authority to make decisions and take actions concerning that property.

This concept of agency is crucial in real estate transactions, where agents must be clear about their authority and the extent of their responsibilities. A general agent maintains a more ongoing relationship with the principal compared to others who might act only on specific occasions or for specific tasks.

In contrast, the other types of agency do not match this broad definition. A universal agent has almost unlimited authority to act on behalf of the principal in all matters, while a special agent is typically authorized to act in a specific transaction or for a limited purpose, such as a real estate agent hired to sell a specific property. A transactional agent operates as an intermediary in a real estate transaction but does not represent either party in an agency capacity.