What have many states adopted in place of subagency?

• A. Open agency
• B. Designated agency
• C. Exclusive buyer agency
• D. Net listing

Answer: (B)

Subagency created confusion about who is representing whom inside a brokerage. Many states addressed this by adopting designated agency, where a specific licensee within a broker’s firm is designated to represent a particular client (buyer or seller). The designated agent owes fiduciary duties to that client—loyalty, confidentiality, disclosure, obedience, and accountability—while other licensees in the same firm can assist with the transaction but do not owe those duties to that client. This arrangement keeps representation clear and focused, reduces conflicts of interest, and preserves client protection within the broader brokerage workflow. Net listing, open agency, and exclusive buyer agency describe different concepts and do not specifically replace subagency in the same way designated agency does.