AgencyIntermediateCalifornia Exam

A subagent owes fiduciary duties to:

AOnly the cooperating broker, under standard California agency practice
BThe principal of the original agent (typically the seller in a traditional listing)Correct
CThe buyer exclusively, as commonly applied in brokerage relationships
DNo one; subagents owe no fiduciary duties, consistent with typical listing agreement terms

Why The principal of the original agent (typically the seller in a traditional listing) Is Correct

Answer B: The principal of the original agent (typically the seller in a traditional listing)

A subagent works under the principal broker and owes the same fiduciary duties to the principal (the seller, in a seller's listing) as the listing agent. Subagency is less common in California today due to buyer's agency agreements.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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