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In Louisiana, a broker wants to create subagency. Which statement is correct?

Correct Answer

C) Subagency can only be created by written agreement

La. R.S. 9:3898 states that subagency can only be created by written agreement. Source basis: Louisiana Legislature official La. R.S. 9:3891, 9:3893, 9:3894, 9:3895, 9:3896, 9:3897, 9:3898, plus La. R.S. 37:1467; checked 2026-04-30.

Answer Options
A
The licensee may disclose confidential information whenever it helps close the transaction.
B
A generic national agency rule replaces the Louisiana Law of Agency.
C
Subagency can only be created by written agreement
D
The label used by the salesperson alone determines the agency relationship.

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Related Topics & Key Terms

Related Topics:

la.Vagency

Key Terms:

louisianala.Vagencysubagency-written-only

Related Concepts

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.

The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.

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.

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