In practice, subagency occurs when a license holder who is not associated with the seller's broker represents the seller through a cooperative agreement with the seller's broker.

• A. Exclusive Right to Sell
• B. Subagency
• C. Open Listing
• D. Dual Agency

Answer: (B)

This question is about subagency. Subagency happens when a license holder who isn’t affiliated with the seller’s broker still represents the seller, but does so through a cooperative agreement with the seller’s broker. In practical terms, the listing broker invites another broker’s licensee to participate in the sale, and that licensee acts as a subagent of the seller. The subagent owes duties to the seller through the listing broker, helping to bring a buyer and negotiate, even though the subagent isn’t part of the seller’s own brokerage.

This setup is different from an Exclusive Right to Sell, where the listing broker alone has the right to market the property and earn the commission, regardless of who finds the buyer. It’s also different from an Open Listing, which is non-exclusive and allows multiple brokers (and the seller themselves) to attempt to sell the property. And it’s not Dual Agency, where one licensee represents both the seller and the buyer in the same transaction, potentially with conflicting duties.