California Real Estate Practice Exam

Broker B assisting Broker A in selling a house with the seller's permission means Broker B is?

1. A co-broker

2. An independent contractor

3. A subagent of the seller

4. A direct agent of the buyer

The correct answer is: A subagent of the seller

In this scenario, Broker B is acting as a subagent of the seller due to the assistance in selling the house under the seller's permission. When a broker or agent assists another broker in the sale of a property with the seller’s consent, they essentially represent the interests of the seller while also working in collaboration with the primary broker. This relationship establishes a subagency, wherein Broker B owes fiduciary duties to the seller, including loyalty, disclosure, and the duty to act in the seller's best interests. This means that although Broker B is assisting Broker A, their obligations are primarily directed at the seller since the seller has given permission for this collaborative effort. In contrast to the other roles mentioned, a co-broker typically refers to partnering brokers working jointly but does not specify agency relationship, making it a less precise term in this context. An independent contractor does not accurately describe Broker B's role in this instance, as it does not capture the agency relationship that exists with the seller. Finally, being a direct agent of the buyer would imply that Broker B's responsibilities and loyalty lie with the buyer instead, which contradicts the premise of the seller's permission. Thus, the best description of Broker B's role in this context is that of a