Which statement about subagency is true?

• A. Salespersons are general agents of the broker.
• B. The salesperson is a subagent of the principal.
• C. A cooperating broker cannot be a subagent.
• D. Many states still operate under subagency as standard.

Answer: (B)

Subagency means the selling broker’s agents act as the seller’s agents through the listing broker. In this setup, the salesperson is a subagent of the principal because their authority and duties flow from the seller via the listing broker, and they owe fiduciary duties (loyalty, disclosure, confidentiality, etc.) to the seller. This arrangement explains why that statement is true: the salesperson isn’t representing the buyer as a primary client, but is assisting the seller through the broker with a duty to act in the seller’s best interests.

Keep in mind that many areas today use buyer agency or designated agency, so subagency isn’t as universal as it once was. The other statements mix up who is owed duties to and don’t describe the subagency relationship as accurately: the relationship between a salesperson and their broker is about the broker–salesperson tie, not who the salesperson represents in the transaction; cooperating brokers can be subagents under subagency; and saying subagency remains standard in many states isn’t broadly true in current practice.