Arkansas agent Paula has a listing agreement with seller Bob for a Hot Springs property. Another agent, Carlos, from a different brokerage contacts Paula and says his buyer client wants to make an offer. If Carlos's brokerage has agreed to act as a subagent of Bob's listing brokerage, which of the following statements correctly describes Carlos's agency obligations?
Correct Answer
B) Carlos owes fiduciary duties to seller Bob because he is acting as a subagent of the listing broker
Under Arkansas agency law, when a cooperating brokerage accepts subagency from the listing broker, the cooperating agent (Carlos) becomes an agent of the seller, not the buyer. As a subagent of the listing broker, Carlos owes fiduciary duties to seller Bob. The buyer in this arrangement is treated as a customer, not a client, and Carlos must disclose his subagency status to the buyer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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