Real Estate Council of Alberta Fundamentals Practice Exam

What type of Power of Attorney is specific and limited in its powers?

1. General

2. Enduring

3. Immediate

4. Special

The correct answer is: Special

A Special Power of Attorney is designed to grant specific and limited powers to an agent for a particular purpose or task. This type of power of attorney is often used when the principal needs someone to act on their behalf in a narrowly defined situation, such as signing documents for a real estate transaction or managing a specific investment. The powers granted are not broad or generalized; they are confined to the activities explicitly detailed in the document, which makes it specific in nature. In contrast, a General Power of Attorney provides broader powers, allowing the agent to act on behalf of the principal in a wide range of matters, including financial and legal affairs. An Enduring Power of Attorney stays in effect even if the principal becomes incapacitated, and an Immediate Power of Attorney allows an agent to act on behalf of the principal immediately upon signing. Neither of these types limit the powers to a specific task as effectively as a Special Power of Attorney does.