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The Legal Blog, brought to you by NVAR's Professional Standards department, helps you stay on top of the latest rules and regulations in the industry.

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Why even consider sub-agency if it is so rarely used by real estate brokerage firms?

Sep 7, 2016

Agency

Question: Why even consider sub-agency if it is so rarely used by real estate brokerage firms.

Answer: This will seem out of date for those who remember the battles within the industry between supporters of sub-agency and buyer-agency. However, many REALTORS® who joined the industry within the last decade have misunderstood the meaning of the term sub-agency. Agents who do not understand the term can not properly explain it to a seller when reviewing a listing agreement. A few listing agents have mistakenly told clients that sub-agency is a listing firm’s share of the commission while buyer agency is the buyer-broker’s share. This has also lead to misunderstandings about how to input this information into MRIS.
Group(s):
  • Agency