Ace the Arizona Real Estate Exam 2025 – Unlock Your Property Dreams!

In the context of managing another person's affairs, universal agency is the correct classification. A universal agency allows the agent (in this case, Joan) to act on behalf of the principal (her sister) in a wide array of matters, covering virtually everything that the principal could do themselves. This is particularly relevant when someone needs to handle multiple or varied responsibilities, such as financial decisions, property management, or personal matters, as is often necessary when a principal is unavailable due to being overseas.

This broad scope of authority distinguishes universal agency from other types of agency arrangements. For instance, general agency would limit the agent's authority to a specific range of tasks, while limited agency restricts the agent to a particular function or transaction. Special agency, on the other hand, is typically associated with a single and specific act or transaction. In this case, since Joan is managing various aspects of her sister's affairs comprehensively, universal agency aptly describes their relationship in this scenario.