What is a sub-agent in real estate?

Enhance your understanding of the Colorado Law and Practice Test. Prepare with multiple choice questions, flashcards, and explanations that make it fun to study. Get exam ready!

A sub-agent in real estate is a licensee who assists the buyer but represents the listing agent. This relationship typically arises within the context of a real estate transaction where the listing agent has the responsibility of representing the seller, but they may extend certain limited representation to another agent, known as the sub-agent. The sub-agent works on behalf of the listing agent and has a fiduciary duty to the seller, even while providing assistance to the buyer.

The role of a sub-agent is crucial as it helps facilitate communication and negotiations without creating a direct agency relationship with the buyer. The sub-agent often helps buyers understand properties and navigate the buying process while ensuring that the interests of the seller, as represented by the listing agent, remain a priority.

Understanding this role is key in real estate transactions, where clear lines of representation and duties towards clients can significantly impact the outcomes and legal implications of the agreement.

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