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Sub-Agency
Is your real estate agent working for you or for the Home Seller?
From WisBar.org,
Subagency routinely occurs in the normal course of real estate practice. For example, assume that the couple from the earlier scenario, after seeing the “For Sale” sign, calls a broker from another real estate company to show them the property. Unless the couple signs a buyer’s agency agreement, they are a customer, and the broker who shows them the property is a subagent of the listing broker, that is, of the principal broker. Whenever potential buyers are shown a property listed by a broker from another real estate company, they are dealing with a subagent, unless they have signed a buyer’s agency agreement. Many areas in Wisconsin have realtor boards offering multiple listing service (MLS) agreements, whereby brokers agree to act as subagents whenever they show property listed by another real estate company to a prospective buyer who is not a client. Because the subagent is not a party to the listing agreement between the seller and the principal broker, the subagent’s client is the principal broker. Therefore, the subagent owes to the principal broker’s client only those duties owed to all parties to the transaction.
Further, the subagent’s role is limited; a subagent may not place the subagent’s interests ahead of the interests of the principal broker’s client nor provide advice or opinions to parties if the advice or opinions are contrary to the interests of the principal broker’s client, unless required by law. For example, if the subagent provides brokerage services to a client (the seller) of the principal broker by showing the property to a potential buyer, the subagent may not provide advice to the potential buyer that would be contrary to the seller’s interests, even though the subagent is not considered an agent of the client. Therefore, the broker who takes the couple through the house may not offer advice to them if this would place the couple’s interests ahead of the seller’s.
Did that make sense to anyone?
Imagine walking into to court for a trial and you meet your attorney. Your attorney is being hired and paid for by the person suing you. Do you feel that your attorney will give you strong representation?
Is this an extreme example of Sub-agency? Maybe, but doesn’t it make sense to have the person assisting you in a real estate transaction, representing you. I can’t think of any examples where sub-agency is a good thing for a buyer. Although I could be convinced that a good sub-agent is better than a bad buyers-agent.
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The Gardyn 