REAL ESTATE AGENT / DEFINITIONS
TL;DR Summary
- Can a sub-agent represent a buyer? No. They work for the seller.
- Is subagency common in 2025? No. Most states favor Buyer Agency.
- Who pays a sub-agent? The listing broker (via seller proceeds).
- Major risk? Anything you tell them must be shared with the seller.
A sub-agent in real estate is a licensed agent who works on behalf of the seller—but isn’t the listing agent. Instead, they assist another agent or brokerage while still owing fiduciary duties to the seller. That means the buyer gets no representation.
This guide explains what a sub-agent does, how it impacts buyers and sellers, and what risks you need to watch out for in 2025.
What is a Sub-Agent?
Subagency in real estate occurs when a licensee is not the listing agent but works with the buyer to show the property, yet still represents the seller. They owe real estate fiduciary responsibilities (loyalty, confidentiality) to the seller and none to the buyer. In many states, this model is outdated due to legal risk.
An agent might use the assistance of other agents, who are called subagents. They assist a real estate agent and act as an agent of the principal (the seller). Certain agency relationships are considered fiduciary, meaning they involve trust and confidence. If you’re new to agency in real estate, it’s worth understanding how these fiduciary relationships work.
This is distinct from an exclusive agents in real estate relationship where a single agent is contractually bound to the seller. In a sub-agency scenario, a cooperating broker from a different firm could technically be representing the seller, not the buyer they are driving around.
This is a dedicated real estate subagent who found a unique niche within the real estate process.
Differences Between Sub-agents, Buyer’s Agents, and Listing Brokers
To see how a sub-agent fits into a listing, start with what a real estate listing is. The distinction lies in who they work for and who pays them.
| Agent Type | Represents | Fiduciary Duty To | Role |
|---|---|---|---|
| Listing Agent | Seller | Seller | Primary agent listed on the agency disclosure form. |
| Sub-Agent | Seller | Seller | Assists listing agent; has no fiduciary duty to buyer. |
| Buyer’s Agent | Buyer | Buyer | Advocates for the buyer; established via a buyer agency contract. |
| Dual Agent | Both | Neutral | Facilitator; limited duties to both parties. |
Sub-Agent Duties: What They Can and Can’t Do for You
A sub-agent’s primary duty is to find potential buyers and negotiate on behalf of the seller. They must adhere to real estate license law and ethical standards, but their loyalty is specific.
- Marketing: They help market the property to attract potential buyers.
- Viewings: They arrange property viewings for interested buyers.
- Negotiation: They negotiate to ensure the best price for the seller.
Crucially, sub-agents cannot represent the buyer’s best interests. This creates a risk of vicarious liability real estate issues, where the seller could be held liable for the sub-agent’s actions. This is why many brokerages now prefer to act as an intermediary broker or use designated agency.
Always review real estate disclosure laws in your specific state, as subagency is effectively banned or obsolete in many regions.
Potential Disadvantages for Buyers (Read Carefully)
If you are a buyer working with a sub-agent, you are essentially unrepresented. Any confidential information you share (like “I’d pay $10k more”) must be passed on to the seller. This is a significant disadvantage in the real estate transaction process.
On the sell side, some owners choose FSBO – here’s how to sell your home without an agent (FSBO) and the trade-offs involved. However, for buyers, the lack of representation is critical.
If you’re a buyer, start with the dos and don’ts when buying a home before agreeing to any agency setup. Most buyers today sign a representation agreement to ensure they have an advocate.
How to Handle Agency Relationships
In the realm of real estate transactions, brokerage cooperation and commission splits are handled behind the scenes. However, you should always review the paperwork. A subagency agreement is rare today but can still exist.
In some states (like Kansas), you’ll see forms such as a transaction broker addendum form in Kansas come into play. This defines whether an agent is an advocate or a neutral facilitator.
When getting started, you may need to review a real estate commission agreement template or a seller questionnaire template to ensure all parties understand the commission split and duties.
For agents studying for their license, sub-agency, buyer’s agency, and listing brokerage structures are common topics on the real estate practice exam. If you are looking to enter the field, check out how to become a real estate agent.
Frequently Asked Questions
No. By definition, a sub-agent works for the seller. If they represent the buyer, they would be a buyer’s agent. Confusion here often leads to implied agency, which can be a legal liability.
A sub-agent represents the seller and must put the seller’s financial interests first, whereas a buyer’s agent advocates solely for the buyer.
The sub-agent is typically paid a portion of the commission by the listing broker, which comes from the seller’s proceeds at closing. Learn more about how buyers agents get paid in real estate.
Joe Stephenson Can Help You With a Real Estate Transaction
Whether you’re a buyer or a seller, navigating agency relationships is complex. For complex situations, consulting real estate attorneys is a smart move.
Stay informed about the latest trends in the real estate agent industry. If you’re selling, explore our listing agent services in the Kansas City metro area.
Agents: Join our real estate mentoring programs to master these concepts.
Contact Joe Today
Joe Stephenson
Brokerage: Weichert, Realtors® – Welch & Company
Expert in real estate dynamics: Learn more about Joe Stephenson, REALTOR®. My real estate career began at the University of Kansas, supporting new home communities. Since then, I’ve expanded my expertise across the entire Kansas City metro, navigating distressed properties, rural land, and urban condos.
Phone: 913-558-1182
Address: 15245 Metcalf Ave, Overland Park, KS 66223
