Agency
When a listing broker enters into a cooperative commission arrangement with a buyer's broker through an MLS, the buyer's broker is acting as:
AA subagent of the listing broker
BA cooperating broker who represents the buyer✓ Correct
CA dual agent representing both parties equally
DA facilitator with no agency relationship
Explanation
In today's practice, cooperating brokers in an MLS transaction typically represent the buyer as buyer's agents under a buyer representation agreement. Subagency (where the cooperating broker represents the seller) has largely been replaced by buyer agency.
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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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Math Concepts
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