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In Alabama, which of the following best describes a 'subagent' in a real estate transaction?

Correct Answer

B) A licensee who, with the principal broker's authorization, acts on behalf of the listing broker's client

A subagent is a licensee who, through the authorization of the listing (principal) broker, acts on behalf of the seller — the listing broker's client. In Alabama, subagency means the cooperating broker and their salespersons owe fiduciary duties to the seller, not the buyer, even though they may be working with the buyer to find a property.

Answer Options
A
A licensee who represents the buyer exclusively under a written buyer agency agreement
B
A licensee who, with the principal broker's authorization, acts on behalf of the listing broker's client
C
A licensee who facilitates a transaction without representing either party as a fiduciary
D
A licensee who represents both the buyer and the seller with written consent of all parties

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Related Topics & Key Terms

Key Terms:

subagencyagency_typeslisting_brokerfiduciary_duties
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