AgencyIntermediateDelaware Exam

In Delaware, which statement about sub-agency is TRUE?

ASub-agency is always in the best interest of the seller
BSub-agency exists when a cooperating broker's agent assists the buyer but is actually an agent of the seller through the listing brokerCorrect
CSub-agency is required under Delaware agency law
DSub-agency always automatically creates a full fiduciary relationship directly with the buyer in every case, under typical circumstances

Why Sub-agency exists when a cooperating broker's agent assists the buyer but is actually an agent of the seller through the listing broker Is Correct

Answer B: Sub-agency exists when a cooperating broker's agent assists the buyer but is actually an agent of the seller through the listing broker

Sub-agency exists when a cooperating broker and their agent assist a buyer but are legally agents of the seller (through the listing broker). Sub-agency is declining because it does not serve buyers' interests — they receive no representation.

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.

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