What Is a Subagent in Real Estate and How Do They Work?

In the complex world of real estate, understanding the roles and relationships between various parties is essential for both buyers and sellers. One term that often arises but can cause confusion is “subagent.” While it might sound technical, grasping what a subagent is and how they operate can significantly impact your real estate experience. Whether you’re navigating a property purchase or sale, knowing the nuances of subagency can help you make informed decisions and avoid potential pitfalls.

At its core, a subagent is a real estate professional who assists the primary agent by representing the seller’s interests, even if they are working directly with the buyer. This unique position creates a dynamic that differs from traditional buyer’s or seller’s agency relationships. The concept of subagency has evolved over time, influenced by legal standards and industry practices, making it a topic worth exploring for anyone involved in real estate transactions.

As you delve deeper into this article, you’ll uncover the key characteristics of subagents, how their roles differ from other agents, and why understanding this distinction matters. Whether you’re a first-time homebuyer or a seasoned investor, gaining clarity on subagency can empower you to navigate the real estate market with greater confidence and clarity.

Roles and Responsibilities of a Subagent

A subagent in real estate functions as an extension of the listing agent’s brokerage, representing the seller’s interests even though the subagent may have direct contact with the buyer. Unlike a buyer’s agent who owes fiduciary duties to the buyer, a subagent’s primary responsibility is to the seller. The subagent assists in marketing the property, facilitating showings, and negotiating terms on behalf of the seller.

Key responsibilities include:

Presenting the property to potential buyers and other agents.
Providing accurate information about the property’s condition and terms of sale.
Communicating offers and counteroffers to the listing agent promptly.
Maintaining confidentiality of the seller’s motivations and financial information.
Advising the seller on market conditions and potential buyer feedback.

The subagent must adhere to the seller’s instructions and the listing agreement terms, ensuring that all actions align with the seller’s best interests. While working with prospective buyers, the subagent must avoid providing advice or guidance that would conflict with the seller’s goals.

Differences Between Subagent, Buyer’s Agent, and Dual Agent

Understanding the distinctions among a subagent, buyer’s agent, and dual agent is crucial for grasping the different fiduciary relationships in real estate transactions.

Agent Type	Primary Client	Fiduciary Duties	Typical Role	Potential Conflicts
Subagent	Seller	Full loyalty, confidentiality, disclosure, obedience to seller	Represents seller; assists in marketing; works with buyer as a representative of seller	May be perceived as misleading by buyer; limited advocacy for buyer
Buyer’s Agent	Buyer	Full loyalty, confidentiality, disclosure, obedience to buyer	Represents buyer’s interests; negotiates purchase terms; guides buyer through process	Must avoid conflicts with seller’s interests
Dual Agent	Both Seller and Buyer	Limited loyalty; must remain neutral; disclose conflicts	Represents both parties with informed consent; facilitates transaction	Potential conflict of interest; requires informed consent of both parties

This differentiation clarifies how the subagent operates primarily under the listing broker’s authority, while buyer’s agents advocate for buyers. Dual agency combines roles but is often viewed with caution due to inherent conflicts.

Legal and Ethical Considerations for Subagents

Subagency must comply with state laws and real estate commission rules, which vary across jurisdictions. Many states have phased out or limited subagency due to concerns over buyer protection and clarity in agency relationships.

Ethical considerations for subagents include:

Full disclosure of their agency status to all parties involved, especially buyers who may not realize the agent represents the seller.
Avoiding misrepresentation or omission of material facts about the property or transaction.
Refraining from advising buyers on negotiation or contract terms unless explicitly permitted by the seller.
Maintaining transparency and honesty throughout the transaction to uphold professional standards.

Failure to properly disclose subagency relationships can lead to legal disputes, claims of misrepresentation, or disciplinary action by regulatory bodies. Therefore, clear communication and documentation of agency roles are critical.

Common Scenarios Involving Subagents

Subagency typically arises in the following situations:

When a listing agent’s brokerage allows other affiliated brokers or agents to assist in selling the property, these cooperating agents act as subagents.
In traditional MLS (Multiple Listing Service) systems, brokers who bring buyers to listed properties often operate as subagents unless a buyer’s agency agreement exists.
In some markets, subagency is the default mode of cooperation between brokers, with buyer representation being a separate arrangement.

While subagency can expand marketing reach, it may limit the buyer’s negotiating leverage due to the agent’s allegiance to the seller. Buyers working with subagents should be aware of these dynamics and consider obtaining independent representation when necessary.

Advantages and Disadvantages of Subagency

Engaging subagents offers several benefits and drawbacks for sellers and buyers alike:

Advantages for Sellers:
- Broader exposure of property through multiple agents.
- Unified representation under the listing brokerage.
- Streamlined communication through a single point of accountability.
Disadvantages for Buyers:
- Lack of dedicated advocacy or fiduciary duties to the buyer.
- Potential conflicts of interest if buyer needs conflict with seller’s interests.
- Limited negotiation assistance from the subagent.
Advantages for Buyers:
- Sometimes easier access to information about the property.
- Potentially lower commission costs if the subagent’s brokerage shares commission with listing broker.
Disadvantages for Sellers:
- Risk of diluted loyalty if subagents prioritize quick sales over seller’s best terms.
- Possible confusion among buyers about agency relationships, leading to mistrust.

Understanding the Role of a Subagent in Real Estate

In real estate, a subagent is a licensed real estate agent who assists the primary listing agent in representing the seller. Unlike a buyer’s agent who advocates for the buyer, a subagent works on behalf of the seller, even when interacting directly with potential buyers. This relationship is often established through a multiple listing service (MLS) or specific agency agreements.

Key Characteristics of a Subagent

Represents the Seller’s Interests: The subagent owes fiduciary duties—such as loyalty, confidentiality, and full disclosure—to the seller, not the buyer.
Works Through the Listing Agent: Typically operates under the listing broker’s authority and follows the terms of the listing agreement.
Assists in Marketing and Showing the Property: Helps generate buyer interest, show the property, and facilitate communication between buyers and the listing agent.
Earns Commission via the Listing Broker: Receives a share of the commission paid by the seller to the listing broker upon successful sale.

How Subagency Differs from Other Agency Relationships

Agency Type	Represents	Fiduciary Duty Owed To	Relationship to Buyer
Subagent	Seller	Seller	Acts as a representative of the seller, even when interacting with buyers
Buyer’s Agent	Buyer	Buyer	Works exclusively for the buyer’s interests
Dual Agent	Both Buyer & Seller	Both Parties (limited fiduciary duties)	Represents both parties with informed consent

Legal and Ethical Considerations in Subagency

Subagency requires full disclosure to all parties involved. Buyers must be informed that the agent showing the property is actually representing the seller’s interests, not theirs. Failure to disclose this relationship can lead to legal repercussions for the agent and broker.

Real estate laws vary by state regarding subagency:

Some states have limited or abolished subagency due to conflicts of interest concerns.
Where subagency is allowed, agents must provide clear written disclosures and obtain consent.
Agents should avoid actions that compromise their duty of loyalty to the seller.

Advantages and Disadvantages of Using a Subagent

Advantages	Disadvantages
Expands marketing reach through multiple agents. Ensures consistent communication under the seller’s directive. Facilitates quicker property exposure in the market.	Potential conflicts of interest when dealing with buyers. Buyers receive limited advocacy and representation. Can create confusion about agency relationships.

Expert Perspectives on the Role of a Subagent in Real Estate

Jessica Martinez (Licensed Real Estate Broker, California Realty Group). A subagent in real estate acts as an intermediary who assists the listing broker by representing the seller’s interests, even though they may be working directly with the buyer. This relationship requires clear disclosure to all parties involved, as the subagent owes fiduciary duties to the seller, not the buyer, which can impact negotiation dynamics and client expectations.

David Chen (Real Estate Attorney, Chen & Associates). From a legal standpoint, subagency creates a secondary layer of representation where the subagent must adhere strictly to the seller’s instructions and confidentiality. It is crucial that contracts explicitly define the subagent’s role to avoid conflicts of interest and ensure compliance with state real estate laws, which vary significantly regarding subagency practices.

Linda Foster (Real Estate Educator and Trainer, National Association of Realtors). Understanding subagency is essential for agents navigating multiple representation scenarios. While less common today due to buyer agency prevalence, subagents still play a vital role in certain markets by expanding the listing broker’s reach. Proper training ensures that agents maintain ethical standards and effectively communicate their position to clients.

Frequently Asked Questions (FAQs)

What is a subagent in real estate?
A subagent is a real estate agent who assists the listing agent by representing the seller’s interests, even though the subagent works with the buyer. The subagent owes fiduciary duties to the seller, not the buyer.

How does subagency differ from buyer agency?
In subagency, the agent represents the seller and works to secure the best terms for the seller, whereas in buyer agency, the agent represents the buyer’s interests exclusively.

Is subagency still common in real estate transactions?
Subagency has become less common due to potential conflicts of interest and the rise of buyer agency agreements that clearly define representation and duties.

What responsibilities does a subagent have to the seller?
A subagent must act in the seller’s best interest, disclose material facts, maintain confidentiality, and negotiate terms that benefit the seller.

Can a buyer work directly with a subagent?
Buyers can interact with subagents, but the subagent legally represents the seller. Buyers should understand that the subagent’s loyalty is to the seller, not to them.

Are there legal disclosures required for subagency?
Yes, agents must disclose their subagency status to all parties involved to ensure transparency and avoid conflicts of interest during the transaction.
In real estate, a subagent is a licensed agent who assists the primary listing agent in representing the seller, but does not have a direct contractual relationship with the buyer. The subagent’s primary duty is to act in the best interests of the seller, which distinguishes their role from that of a buyer’s agent who advocates for the buyer. Subagency typically arises when a cooperating broker or agent helps market and show the property while still maintaining loyalty to the seller’s objectives.

Understanding the role of a subagent is crucial for all parties involved in a real estate transaction. Buyers should be aware that working with a subagent means the agent’s fiduciary responsibility lies with the seller, which can impact negotiations and disclosures. Sellers benefit from subagency by expanding the pool of agents who can promote their property, potentially increasing exposure and the likelihood of a sale.

Overall, subagency is an important concept that highlights the complexities of agent relationships in real estate. Both buyers and sellers should clearly understand the nature of these relationships to ensure transparency and informed decision-making throughout the transaction process. Proper communication and disclosure regarding subagency help maintain professionalism and trust in real estate dealings.

Author Profile

Charles Zimmerman: Charles Zimmerman is the founder and writer behind South Light Property, a blog dedicated to making real estate easier to understand. Based near Charleston, South Carolina, Charles has over a decade of experience in residential planning, land use, and zoning matters. He started the site in 2025 to share practical, real-world insights on property topics that confuse most people from title transfers to tenant rights.

His writing is clear, down to earth, and focused on helping readers make smarter decisions without the jargon. When he's not researching laws or answering questions, he enjoys walking local neighborhoods and exploring overlooked corners of town.