TREC Law of Agency Practice Exam 2025 - Free Law of Agency Practice Questions and Study Guide

Question: 1 / 400

Which of the following is true about representing buyers and subagency?

Subagency is preferred

Only occurs when the buyer is unrepresented

Representing buyers through subagency typically occurs when a buyer is unrepresented. Subagency allows an agent of the seller's broker to assist the buyer without forming a direct agency relationship with the buyer. In such cases, the buyer is not represented by a specific agent; thus, subagency provides a means for a buyer to receive assistance during the purchasing process even without having a dedicated buyer's agent.

This process is significant because the seller's broker remains the primary agent for the seller while the subagent aids in facilitating the sale for the buyer. It emphasizes the importance of understanding the nature of agency relationships, particularly how they can vary based on the representation status of the buyer.

While it may be possible for a buyer to be represented in other circumstances, subagency specifically is invoked when the buyer is unrepresented. This clarifies the conditions under which subagency will occur and highlights its role in real estate transactions. Other options may not be accurate regarding the nature of subagency or the legal context in which it operates.

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