Agency

What is sub-agency in a real estate transaction?

AWhen a salesperson works under a broker
BWhen a cooperating broker/agent works on behalf of and owes duties to the listing broker's principal (the seller)✓ Correct
CWhen a buyer hires multiple agents to compete for the best deal
DWhen an agent acts as both agent and principal

Explanation

Sub-agency arises when a cooperating agent works in the transaction on behalf of the listing broker's client (the seller), owing fiduciary duties to the seller rather than the buyer they are assisting.

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