What is meant by "sub-agency" in the context of Maryland real estate?

Sub-agency refers to a situation in real estate where an additional agent, often on a different brokerage, represents the principal (the seller or buyer) but does so under the authority of the primary agent. In this scenario, the primary agent, who has an established agency relationship with the principal, allows another agent to act on their behalf in facilitating a transaction. This relationship can arise in several situations, such as when the primary agent is unable to handle a specific aspect of the transaction or when a buyer is being shown properties by another agent who does not have a direct agency relationship with the buyer.

The concept is particularly important in the context of Maryland real estate because it outlines the dynamics of agent relationships and responsibilities. The primary agent retains the fiduciary duties to the principal, including loyalty, confidentiality, and full disclosure, while the sub-agent assumes certain responsibilities in line with the authority granted by the primary agent. This helps to ensure that all parties involved are clear about their roles in the transaction.

The other options present scenarios that do not accurately capture the definition of sub-agency. An independent buyer acting on their own does not create a sub-agency, nor does an unlicensed individual selling property fit into this framework, since sub-agency requires a licensed