What type of agency is created through the written authorization of a principal?

The correct answer is express agency because it refers specifically to an agency relationship that is established through a written agreement or authorization from the principal. In express agency, the terms and conditions of the agency relationship are clearly outlined in a formal document, allowing both parties to understand their rights and obligations.

This form of agency is essential in real estate transactions, as it provides a clear framework for the agent's authority and responsibilities, ensuring that the principal's interests are represented effectively. By having a written agreement, both the agent and the principal can refer to the document for clarity and enforceability.

The other types of agency differ fundamentally in how they are created. Implied agency arises through the actions or conduct of the parties rather than through explicit written authorization. Designated agency involves appointing a specific agent within a brokerage to represent a client in a transaction, which can also be based on express agency agreements but involves additional complexities within the brokerage context. Universal agency grants broad authority to an agent to act on behalf of the principal in all matters, usually requiring a power of attorney, and is less common in real estate dealings.