Which type of agency contract is more popular with agents and firms?

The general agency contract is favored by agents and firms primarily because it allows a broader scope of authority. Under this type of contract, the agent is authorized to conduct a variety of transactions on behalf of the principal, giving the agent significant flexibility to act in the best interest of the client without needing prior approval for every individual action. This is beneficial for both parties: agents can manage their clients more efficiently, and firms can expand their business operations through motivated and empowered agents.

In contrast, special agency contracts typically grant limited authority, focusing on specific tasks or transactions. This restricts the agent's ability to make decisions on behalf of the principal, which may not be ideal in environments where quick or varied actions are needed. Exclusive agency contracts can create competitive tension between agents, as they often specify a single agent for a particular property while still allowing the principal to sell the property independently. Lastly, limited agency contracts, while providing a degree of support, might impose strict boundaries on what the agent can do, making them less attractive for those seeking comprehensive representation and managing multiple aspects of a client’s needs.