Agency

In Pennsylvania, what is 'sub-agency' in real estate transactions?

AWhen a licensee works part-time under a supervising broker
BWhen a cooperating broker assists the listing broker in finding a buyer but represents the seller's interests, not the buyer's✓ Correct
CWhen two brokerages enter into a formal co-listing agreement to jointly market a property
DWhen a property manager hires a sub-contractor to perform property maintenance

Explanation

Sub-agency occurs when a cooperating broker (such as a buyer's broker in an MLS transaction) assists in finding a buyer but represents the seller's interests — effectively acting as a sub-agent of the listing broker. Sub-agency has largely been replaced by buyer's agency in Pennsylvania, as most cooperating brokers now represent buyers rather than sellers.

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