Agency
What is 'subagency' in real estate?
AWhen a salesperson works under a broker's supervision
BWhen an agent acts on behalf of another broker's client with permission of the principal broker✓ Correct
CWhen a broker refers a client to a broker in another state
DWhen the escrow company acts as a neutral third party for both principals
Explanation
Subagency occurs when one broker (usually the selling/buyer's agent) acts as an agent of the listing broker, and thus also represents the seller. Subagency has largely been replaced by buyer agency and disclosed dual agency in California practice.
Related California Agency Questions
- What is 'dual agency' in a California real estate transaction?
- What is 'agency by estoppel'?
- An agent who locates a ready, willing, and able buyer for a property, but who was never authorized by the seller, may still claim a commission under what legal theory?
- The California Agency Disclosure law (Civil Code §2079) requires an agent to provide the Agency Disclosure form to buyers and sellers at what point in the transaction?
- Which of the following best describes an 'express agency'?
- A seller's agent who unintentionally creates an agency relationship with the buyer by providing advice and assistance may be guilty of:
- A buyer's agent has a duty to maintain confidentiality about the buyer's motivations and financial position. Which of the following CAN the agent reveal to the seller?
- Subagency in real estate refers to:
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