Definition: Subagency refers to a specific client representation relationship between a property listing broker or real estate agent and another real estate broker or agent who brings the buyer to purchase the property.
In subagency, the agent bringing the buyer is actually working for the seller as a subagent of the listing broker. This is important, as the agent working with the buyer actually owes fiduciary duties to the seller, not the buyer.
This practice is all but dead in most states, as buyer agency is becoming more common and because the buyers need an advocate to represent their interests in the transaction. Also, as the listing brokers and their seller clients are held responsible for the actions, errors and omissions of the subagent, this is not a desired situation in most of today's real estate marketplace.
Alternate Spellings: sub-agency
