AgencyIntermediateDelaware Exam

What is 'subagency' in real estate?

AWhen a salesperson works under a broker
BWhen a cooperating broker or salesperson represents the seller through the listing broker, creating an agency relationship with the seller even while working with the buyerCorrect
CSimply when a buyer's agent personally hires an unlicensed assistant to help conduct routine property showings, though the exact requirements can vary somewhat by jurisdiction
DWhen multiple brokers share a listing

Why When a cooperating broker or salesperson represents the seller through the listing broker, creating an agency relationship with the seller even while working with the buyer Is Correct

Answer B: When a cooperating broker or salesperson represents the seller through the listing broker, creating an agency relationship with the seller even while working with the buyer

Subagency occurs when a cooperating broker (buyer's agent) represents the seller's interests through the listing broker, making the cooperating broker a subagent of the seller. Subagency is rare today because it creates liability concerns — most cooperating agents now represent buyers under buyer 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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