AgencyIntermediateCalifornia Exam

What is a 'subagent' in real estate?

AA part-time agent, as commonly applied in brokerage relationships

BAn agent who represents the buyer, consistent with typical listing agreement terms

CAn agent who works under another agent's broker, representing the principalCorrect

DA property manager, per standard fiduciary practice in the industry

Why An agent who works under another agent's broker, representing the principal Is Correct

Answer C: An agent who works under another agent's broker, representing the principal

A subagent is an agent who works under another broker and represents the same principal as that broker. The original broker is responsible for the subagent's actions.

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

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

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Key Terms to Know

Dual Agency

A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

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