Real Estate Council of Alberta Fundamentals Practice Exam

The type of Power of Attorney that has no limits and can make both financial and legal decisions is classified as General. A General Power of Attorney grants comprehensive authority to the agent or attorney-in-fact, enabling them to act on behalf of the principal in various matters, including financial transactions and legal affairs. This broad scope differentiates a General Power of Attorney from other types, such as Special or Limited Powers of Attorney, which are restricted to specific tasks or activities.

In contrast to a General Power of Attorney, a Special Power of Attorney focuses on designated responsibilities and does not encompass all legal and financial decisions. An Enduring Power of Attorney may provide additional protections if the principal becomes incapacitated but does not inherently allow for limitless authority—its scope can be defined. An Immediate Power of Attorney refers to when the authority comes into effect right away, yet it can still have restrictions based on the specific document's language.

Understanding the distinctions between these types of Power of Attorney is crucial for recognizing the extent of control and responsibility granted to an agent. The General Power of Attorney's unrestricted nature embodies the capability to manage a wide range of affairs, which is why it is the correct answer in this context.