Agency
Iowa's unilateral offer of subagency through the MLS means:
AAll cooperating brokers automatically become subagents of the listing broker
BThe listing broker offers subagency, but cooperating brokers must affirmatively accept it to become subagents✓ Correct
CThe MLS requires all cooperating brokers to be subagents
DSubagency is prohibited in Iowa's MLS systems
Explanation
An MLS offer of subagency is a unilateral offer — cooperating brokers must affirmatively accept it. If a cooperating broker instead has a buyer representation agreement, they are representing the buyer, not acting as a subagent, even if subagency is offered through the MLS.
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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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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