What type of agency is created by a listing agreement?

A listing agreement typically establishes a special agency relationship between the seller (the principal) and the real estate agent (the broker). Special agency is characterized by the broker's authority being limited to performing a specific task or achieving a particular goal, which in this case is to find a buyer for the property under the terms set forth in the listing agreement.

In a special agency, the agent has the authority to act on behalf of the principal but only within the confines of the specific task or transaction outlined in the agreement. This means the agent cannot make broader decisions beyond what the listing agreement specifies, such as negotiating other properties for the seller or acting independently of the seller's specific instructions.

This contrasts with general agency, where the agent has broader powers to act on behalf of the principal across a range of activities. Universal agency goes even further, granting the agent the power to act on behalf of the principal in all matters, which does not apply to the limited scope of a listing agreement. A limited agency, while it implies some restraint on authority, does not specifically fit the standard definition depicted in a typical real estate listing arrangement. Thus, the nature of the listing agreement is why special agency is the correct response.