Subagency

Question 1

Subagency

Answer 1

refers to a specific client representation relationship between a property broker or real estate agent and another real estate broker or agent who brings the buyer to the property.
There is not a listing agreement or similar document that must be filled out to begin subagency

Question 2

Subagency is disappearing.

Answer 2

In some states it is no longer legal to practice subagency. When someone moves to that state, the buyer will have to represent him or herself or hire a buyer’s agent.

Question 3

A specific client representation relationship between a property broker or real estate agent and another real estate broker or agent who brings the buyer to the property refers to what?

Answer 3

Subagency

Question 4

By denying other broker’s salespeople in other offices from showing the broker’s listings, the listing broker can lessen what?

Answer 4

Liability within the transaction

Question 5

To begin subagency, which document must be completed?

Answer 5

There is no document that need be completed.

Question 6

When showing another company’s listing, the licensee is acting in what capacity?

Answer 6

Either a buyer’s agent or a subagent

Question 7

The Multiple Listing Service was created originally for what purpose?

Answer 7

The MLS was created when subagency was the only way that brokers could cooperate with each other.

Question 8

An agent working with a buyer can reject subagency at any time by doing what?

Answer 8

Signing the buyer as a client with a buyer’s agency agreement

Question 9

Which rule in real estate states that a broker MUST work with a subagent?

Answer 9

There is no rule stating that a broker must work with a subagent.

Question 10

What problem exists if a buyer remains a customer instead of becoming a client?

Answer 10

If the buyer remains a customer, he or she could wander away from the licensee and begin to work with another one.

Question 11

The real disadvantage in subagency is to whom and why?

Answer 11

The disadvantage is to the buyer because they have no representation

Question 12

Usually, an investor works with whom?

Answer 12

The listing agent

Question 13

What was the major change that came to real estate after seller agency?

Answer 13

Subagency

Question 14

The seller’s agent and the subagent are not to disclose what?

Answer 14

Confidential information

Question 15

Subagency exists….

Answer 15

when the buyer is a customer and there are two brokers involved

Question 16

With Subagency

Answer 16

All fiduciary duties go to the seller-client and the buyer is simply treated fairly and honestly

The seller is at a distinct advantage by having two agents while the buyer has none. The subagent was representing the seller when he or she was showing listings at the office and is representing the seller when showing listings at another office

Question 17

When showing another company’s listing

Answer 17

the licensee is a subagent or a buyer’s agent

All the salesperson has to do to end subagency is to turn the buyer into a client.

Question 18

Any time there is an agency relationship

Answer 18

the client is liable for any wrongdoing that the agent does

Question 19

The real disadvantage in subagency is to the buyer

Answer 19

The buyer has no representation

Question 20

It takes two different brokers to practice subagency

Answer 20

The seller has his or her listing with one broker and the salesperson working with the buyer-customer is licensed through another broker.

Question 21

Subagency exists

Answer 21

when the buyer is a customer and there are two brokers involved. Both the listing broker and the subagent are representing the seller.

Question 22

Many brokers have an office policy that states that they will not allow a subagent to show their listings…

Answer 22

This is to reduce the liability the broker and the seller may have if a subagent makes a mistake when negotiating an offer.

Question 23

SC

Answer 23

Subagent Commission

Question 24

BC

Answer 24

Buyer’s agent commission

Question 25

The agent that is working with the buyer…..

Answer 25

can reject subagency at any time