Agency
What is subagency in Minnesota real estate?
AAn agent who represents both buyer and seller simultaneously
BAn arrangement where the listing broker's subagents also represent the seller when assisting buyers✓ Correct
CA buyer's agent who works under a listing broker's supervision
DAn agent who handles multiple transactions simultaneously
Explanation
Subagency occurs when a selling agent (typically from another brokerage) works as a subagent of the listing broker and thus represents the seller—not the buyer—even while assisting the buyer in finding and purchasing a home. Subagency has largely been replaced by buyer agency in Minnesota, but the concept is still tested on the exam.
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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.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
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.
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