Which licensee scenario illustrates the concept of sub-agency?

The scenario that illustrates the concept of sub-agency involves a listing agent allowing another firm to present an offer. In this context, sub-agency occurs when a listing agent represents the seller and grants another agent, often from a different firm, the authority to act on behalf of the seller regarding the sale of the property. This arrangement establishes a relationship where the second agent sub-agently represents the seller, even though they are technically working with the buyer.

This situation typically arises in real estate transactions where the listing agent has retained a fiduciary duty to the seller, while the sub-agent acts to fulfill the seller's interests in the negotiation process with potential buyers. In this case, the listing agent remains responsible for the ultimate outcome of the sale and the actions taken by the sub-agent.

The other scenarios do not depict sub-agency. A listing agent showing an unlisted property demonstrates direct service to a buyer by the listing agent without involving another firm's representation. A client working directly with their own agent is an example of agency, but it does not involve sub-agency since the relationship remains confined within that agent-client framework. An agent showing properties without an agreement indicates a lack of formal representation, failing to establish any agent-client relationship, whether direct or sub-ag