Final answer:
A listing agreement grants authority to a real estate agent to represent a principal in the sale, lease, or management of a property. However, it does not make the agent a universal agent.The correct answer is option False.
Step-by-step explanation:
False
A listing agreement is a contract between a real estate agent (the agent) and a principal (the property owner) that gives the agent the authority to represent the principal in the sale, lease, or management of a property. While the agent has the authority to act as a representative of the principal, they are not considered a universal agent.
A universal agent is someone who has the power to act on behalf of the principal in any and all matters. This means that they have the authority to make legal and financial decisions on behalf of the principal. In a real estate context, a universal agent would have complete control over the property, including the power to buy, sell, lease, and manage it.
However, a listing agreement only grants the agent specific authority to perform certain actions related to the property, such as marketing and negotiating the sale or lease. The agent does not have the power to make any decisions that are not specifically outlined in the listing agreement. Therefore, the statement that an agent can serve as a universal agent by signing a listing agreement with a principal is false.