California Real Estate Broker ExaminationAgencyMedium
A real estate broker is acting as a subagent. Which of the following statements accurately describes the subagent's relationship?
- AThe subagent represents the listing broker directly.
- BThe subagent represents the buyer directly.
- CThe subagent owes fiduciary duties to the seller, through the listing broker.
- DThe subagent represents neither the buyer nor the seller, acting as a neutral facilitator.
Show answer & explanationAnswer & explanation
Correct answer: C. The subagent owes fiduciary duties to the seller, through the listing broker.
A subagent is an agent of an agent. In real estate, a subagent typically works for the listing broker and therefore owes fiduciary duties to the seller (the principal), not directly to the listing broker or the buyer. The subagent acts 'through' the listing broker to represent the seller.
Why the other options are wrong
- A. While the subagent works under the listing broker, their ultimate fiduciary duties are to the principal (the seller), not the listing broker themselves.
- B. A subagent does not represent the buyer directly; that would be a buyer's agent.
- D. A subagent is a fiduciary agent, representing a principal, not a neutral facilitator.
Subagency
An agency relationship where an agent (the subagent) is authorized by another agent (the primary agent) to assist in representing the principal. The subagent owes fiduciary duties to the principal, not the primary agent directly.
- Agent of an agent
- Fiduciary duties owed to the original principal (e.g., seller)
- Common model before widespread buyer agency
- Requires principal's consent (often implied via MLS participation)
Memory trick: Subagents link to the principal, through the master agent's call.