The relationship between a broker and their salesperson is what type of agency?

The relationship between a broker and their salesperson is characterized as a general agency. In a general agency, the agent (the salesperson) has the authority to perform a variety of tasks on behalf of the principal (the broker) but does not have unlimited authority to act outside the defined scope of their agency. This means that the salesperson can conduct business and make decisions related to real estate transactions, but ultimately, the broker oversees these actions and has the final say.

This type of agency is distinct because it allows for a broader range of activities compared to a special agency, which is more limited and typically defined by specific tasks or transactions. In a general agency, the salesperson can represent the broker in many dealings, aligning with the responsibilities usually assigned in a real estate context.

The other types of agency mentioned—ostensible and fiduciary—do not accurately describe the broker-salesperson relationship in this context. Ostensible agency pertains to situations where a third party assumes someone is an agent due to the actions of the principal, while fiduciary agency emphasizes a trust relationship requiring loyalty and full disclosure. While fiduciary duties exist within the broker-salesperson dynamic, the overall relationship framework is best categorized as a general agency.