An individual who is not employed by the client, but has been delegated agency duties by an agent of the client, is referred to as a(n):
Audio Lesson
Duration: 2:45
Question & Answer
Review the question and all answer choices
subcontractor.
subaccount.
A subaccount is not a recognized real estate term. This option likely confuses terminology with accounting concepts, which are unrelated to agency relationships in real estate practice.
subagent.
A subagent would be someone who represents the original client, not someone delegated duties by the agent. A subagent owes fiduciary duties to the original principal, not to the agent who delegated the duties.
tandem agent.
A tandem agent is not a standard term in real estate agency relationships. This option may confuse students with concepts like dual agency or team approaches, which are different agency structures entirely.
Why is this correct?
A subcontractor is correct because they are hired by the agent to perform specific tasks on behalf of the client, operating under the agent's supervision and authority. They are not directly employed by the client but are engaged through the agent, maintaining the agency relationship structure.
Deep Analysis
AI-powered in-depth explanation of this concept
This question tests understanding of agency relationships in real estate, a fundamental concept that impacts how real estate professionals can legally represent clients. The distinction between different types of agency relationships is crucial because it affects fiduciary duties, liability, and compensation. The question specifically addresses who can perform duties on behalf of a client when not directly employed by them. The correct answer, 'subcontractor,' represents someone hired by the agent to perform specific tasks while remaining under the agent's supervision. This differs from a subagent, who would owe duties to the original client rather than the agent. Understanding these relationships prevents unauthorized practice of real estate and ensures proper disclosure to clients, which is essential for ethical compliance and avoiding legal disputes in California's heavily regulated real estate market.
Knowledge Background
Essential context and foundational knowledge
Agency relationships form the foundation of real estate practice, governing how licensees represent clients. In California, the Bureau of Real Estate regulates these relationships to protect consumers. A subcontractor arrangement occurs when an agent hires another professional (like an inspector or appraiser) to perform specific services while maintaining responsibility to their client. This differs from an independent contractor, who works for themselves but may be engaged by an agent. California law requires proper disclosure of these relationships to ensure clients understand who is performing services on their behalf and who ultimately has responsibility for those services.
Think of a subcontractor like a specialist hired by a general contractor. The specialist works on the project but reports to and is supervised by the general contractor, not the homeowner who hired the general contractor.
When you see 'delegated duties by an agent,' visualize this construction relationship to remember the subcontractor concept.
Look for keywords like 'delegated duties by an agent' and 'not employed by the client' to identify subcontractor scenarios. Remember that subcontractors work for the agent, not the client.
Real World Application
How this concept applies in actual real estate practice
A listing agent contracts with a professional photographer to take high-quality photos of a property for the listing. The photographer is not employed by the seller (client) but by the agent. If the photographer accidentally damages the property during the shoot, the agent is responsible to the client, not the photographer. The photographer is a subcontractor who performs delegated duties under the agent's authority while remaining independent of the direct client relationship.
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