Owners list their house with BBT Realty. A salesperson for AAA Realty obtains permission from BBT Realty to show the property. If the salesperson from AAA Realty presents an offer, who is acting as a subagent for the owner?

Rationale

Salesperson of AAA Realty is acting as a subagent for the owner.

The salesperson from AAA Realty, having obtained permission from BBT Realty to show the property, is acting on behalf of the owner in presenting an offer. This arrangement designates the AAA Realty salesperson as a subagent, facilitating the transaction while remaining under the auspices of the listing firm's agreement.

A (salesperson of BBT Realty) YOUR ANSWER

The salesperson of BBT Realty is directly representing the owner as the listing agent and does not act as a subagent. Their role is to promote the property on behalf of BBT Realty, which has a contractual obligation to the owner, rather than representing any other party.

B (principal broker of BBT Realty) YOUR ANSWER

The principal broker of BBT Realty oversees the operations of the brokerage and ensures compliance with real estate laws and regulations. Although they are involved in the listing agreement with the owner, they do not serve as a subagent in this scenario, as subagency is typically a function assigned to individual salespersons.

C (salesperson of AAA Realty) CORRECT

The salesperson of AAA Realty is acting as a subagent for the owner by presenting an offer to purchase the property. This role is possible because they have received permission from the listing agent at BBT Realty, thus creating an agency relationship with the owner while representing the buyer's interests.

D (principal broker of AAA Realty) YOUR ANSWER

The principal broker of AAA Realty does not act as a subagent in this situation. Their role involves overseeing the operations of their brokerage rather than representing the owner in the transaction. Subagency requires the involvement of a licensed salesperson, who can negotiate and present offers on behalf of the owner.

Conclusion

In real estate transactions, the concept of subagency allows a salesperson to represent the owner's interests while working under a different brokerage. In this scenario, the salesperson from AAA Realty, having secured permission from BBT Realty, acts as a subagent for the owner by presenting offers. This relationship underscores the collaborative nature of real estate transactions, where multiple parties can work together to achieve a common goal.

Owners list their house with BBT Realty. A salesperson for AAA Realty obtains permission from BBT Realty to show the property. If the salesperson from AAA Realty presents an offer, who is acting as a subagent for the owner?

Salesperson of AAA Realty is acting as a subagent for the owner.

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