What is a key drawback of sub-agency that sellers should be aware of?

A key drawback of sub-agency that sellers should be aware of is that they will be vicariously liable for the actions of the sub-agent. This means that if a sub-agent acts negligently or breaches their duties while representing the seller’s interests, the seller could be held legally responsible for any damages or issues that arise from those actions. This liability can be a significant concern, as sellers may not have direct oversight of the sub-agent's conduct, making it difficult to control or manage potential risks associated with their involvement.

Understanding this aspect is crucial for sellers, as it underscores the importance of selecting competent agents and ensuring clear communication about roles and responsibilities in the transaction. Recognizing the implications of vicarious liability can lead sellers to question the structure of representation they choose, ultimately influencing their decision on how to proceed with their real estate transactions.