Historically, all cooperating brokers in the MLS were subagents of the seller. This meant that even the broker who worked with the buyer owed fiduciary duties to the seller. Modern practice has largely moved away from subagency toward buyer agency and transaction brokerage.
Under the old MLS model, Agent A lists a property and Agent B shows it to a buyer. Agent B was technically a subagent of the seller, meaning Agent B owed duties to the SELLER, not the buyer — even though the buyer thought Agent B was "their" agent.
Subagency is mostly historical but still tested. The key point: a subagent owes duties to the SELLER through the listing broker, NOT to the buyer. This is why buyer agency agreements became important — to ensure buyers have their own representation.
Related Terms
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
Frequently Asked Questions
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