California Real Estate Practice Exam

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A subagent to the principal is authorized by?

The state real estate commission
The principal
The supervising broker
An external regulatory body

The correct answer is: The principal

A subagent is someone who represents the principal's best interest while working under a different agent. This means that the principal is the only authorized entity to give the subagent permission to act on their behalf. Option A is incorrect because the state real estate commission does not have the authority to authorize a subagent. Option C is incorrect because a supervising broker is not the principal and does not have the authority to authorize a subagent. Option D is incorrect because an external regulatory body also does not have the authority to authorize a subagent. Therefore, the only correct answer is Option B, the principal.