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 Sub-agency has largely been replaced by buyer's agency in Pennsylvania, as most cooperating brokers now represent buyers rather than sellers.
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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.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
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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