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Define Subagency in Real Estate


"Subagency" is when one person or company helps another person or company represent someone else. In real estate, this usually means a second real estate agent helps the main agent who is working for a home seller or buyer. Even though the second agent is helping, they still have to follow the same rules and act in the best interests of the person they are representing.


For example, let's say Agent A is helping a couple sell their house. Agent B, from a different real estate company, finds a potential buyer and wants to help them purchase the house. Agent B becomes a subagent of Agent A, working together to make the deal happen. Both agents must look out for the best interests of the couple selling the house, even though they work for different companies.

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A few more points to consider about subagency in real estate:

Legality and state regulations: Subagency is not legal in all states, and some states have specific regulations that govern its use. It's essential to be familiar with the laws and regulations in your state or jurisdiction to ensure you're in compliance. Dual agency, where an agent represents both the buyer and the seller, is more commonly practiced in states where subagency is not allowed.

Disclosure: It's crucial to disclose the existence of a subagency relationship to all parties involved, including the buyer and the seller. Transparency is vital to avoid conflicts of interest and ensure that everyone understands the roles and responsibilities of each agent.

Alternative names: In some cases, a subagency relationship may be referred to as a "cooperating brokerage" or "selling agency." These terms emphasize the collaborative nature of the relationship between the two agents, who are working together to facilitate a real estate transaction.

Fiduciary duty: As a subagent, the second agent has the same fiduciary duty to the client as the primary agent. This means that both agents must act in the best interests of the client, protect their client's confidential information, and work diligently to achieve the client's goals.

Potential conflicts: While subagency can be beneficial in certain situations, it can also create potential conflicts of interest. For example, if the subagent is also representing a buyer, they may be torn between their duty to the seller and their responsibility to the buyer. To avoid such conflicts, some real estate professionals prefer to work with buyer's agents, who are explicitly dedicated to representing the interests of the buyer.

Understanding these additional aspects of subagency will help you navigate the complexities of real estate representation and ensure that you are providing the best possible service to your clients.
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"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"

In the land of homes and dreams,
Real estate agents work in teams.
Subagency is what we call,
When one helps another, standing tall.

Agent A, with clients in hand,
Is selling a house, oh so grand.
Agent B comes along and sees,
A chance to help, like a gentle breeze.

Together they work, side by side,
For the sellers, they'll be their guide.
Though from different firms they've come,
Subagency unites them as one.

For in the world of homes and hues,
Subagency means shared values.
Together they work, to represent,
The clients' best, that's their intent.

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