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.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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