Which scenario best describes subagency in real estate?

Which scenario best describes subagency in real estate?

• A. When a license holder is not associated with the seller's broker but is representing the seller through a cooperative agreement with the seller's broker.
• B. When a license holder represents the buyer in a transaction.
• C. When a license holder acts as a dual agent representing both the buyer and seller.
• D. When a license holder is affiliated with the buyer's broker but not the seller's broker.

Answer: (A)

Subagency means a listing broker uses cooperating brokers or subagents to help sell the property, and these subagents, while not part of the seller’s own brokerage, represent the seller through a cooperative arrangement with the seller’s broker. In this setup, the subagent works to advance the seller’s interests and owes fiduciary duties to the seller, even though they’re not directly affiliated with the seller’s brokerage. The scenario described fits this perfectly: a license holder not affiliated with the seller’s broker still represents the seller via a cooperative agreement with the seller’s broker. Choosing to represent the buyer would be buyer agency, not subagency. Acting as a dual agent means representing both parties in the same transaction, which is a different arrangement with its own implications. Being affiliated with the buyer’s broker but not the seller’s broker describes representing the buyer through the buyer’s side, not performing subagency for the seller.

Subagency means a listing broker uses cooperating brokers or subagents to help sell the property, and these subagents, while not part of the seller’s own brokerage, represent the seller through a cooperative arrangement with the seller’s broker. In this setup, the subagent works to advance the seller’s interests and owes fiduciary duties to the seller, even though they’re not directly affiliated with the seller’s brokerage. The scenario described fits this perfectly: a license holder not affiliated with the seller’s broker still represents the seller via a cooperative agreement with the seller’s broker.

Choosing to represent the buyer would be buyer agency, not subagency. Acting as a dual agent means representing both parties in the same transaction, which is a different arrangement with its own implications. Being affiliated with the buyer’s broker but not the seller’s broker describes representing the buyer through the buyer’s side, not performing subagency for the seller.