What is the role of a sub-agent in a real estate transaction?

The role of a sub-agent in a real estate transaction specifically refers to a licensee who performs agency functions on behalf of another firm's client. This means that the sub-agent acts under the authority of a primary agent, representing the interests of the client of the primary agent rather than their own interests or those of a different party.

In this capacity, the sub-agent must adhere to the same fiduciary duties and obligations as the primary agent, including loyalty, confidentiality, and full disclosure, thus ensuring that the client's confidential information and goals are protected during the transaction. This is particularly important in real estate deals, where multiple agents may be involved, maximizing support for the primary agent's client while striving for a successful transaction.

The other options can be misleading or too narrow in scope. For instance, a sub-agent does not represent just the buyer or just the seller; rather, they represent the client of the primary agent, regardless of whether that client is buying or selling. The sub-agent also does not have a direct agreement with the buyer but works under the agency created by the relationship established by the primary agent. This understanding clarifies the sub-agent's role and responsibilities in real estate transactions.