Agency
In Colorado, a 'subagent' in real estate is:
AA. An agent hired by the buyer
BB. A broker who is authorized by the listing broker to represent the seller's interests to potential buyers — historically common but rare now due to disclosure requirements✓ Correct
CC. A transaction broker
DD. An unlicensed assistant
Explanation
Subagency was historically the dominant model in which all cooperating brokers who showed a listed property were considered agents of the seller (subagents of the listing broker). This created undisclosed agency problems for buyers.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
State-Specific Concepts
Disclosure Requirements
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