In real estate, a subagent is a real estate professional who represents the seller through another agent, rather than working directly for the buyer. A subagent owes their legal duties—such as loyalty, confidentiality, and obedience—to the seller, even though they may interact with buyers during showings or negotiations.
Subagency was more common in the past, but it still exists in certain transactions and markets. Because the concept can be confusing, understanding what a subagent is—and is not—is important for both buyers and sellers.
How Subagency Works
Subagency arises when a seller lists a property with a listing agent, and that listing agent authorizes other agents to help market the property. When another agent brings a buyer to the property without entering into a buyer representation agreement, that agent may legally become a subagent of the seller.
In this arrangement, the subagent works to help sell the property but does so on behalf of the seller’s interests. Even though the subagent may spend time with the buyer, answer questions, or arrange showings, they do not represent the buyer.
Duties Owed by a Subagent
A subagent owes the same core fiduciary duties to the seller as the listing agent. These duties typically include loyalty, confidentiality, disclosure, obedience, and reasonable care. This means the subagent must act in the seller’s best interests and cannot share confidential seller information with buyers.
For example, a subagent cannot disclose how low a seller might be willing to go on price or reveal personal motivations for selling. At the same time, the subagent is generally required to share information learned from the buyer that could benefit the seller.
Why Subagency Can Be Confusing for Buyers
From a buyer’s perspective, subagency can feel counterintuitive. Buyers may assume that an agent showing them a property is working on their behalf. In a subagency situation, this is not the case.
Because the subagent represents the seller, buyers should be cautious about sharing sensitive information, such as their maximum budget, urgency, or negotiation strategy. Anything disclosed to a subagent may be legally shared with the seller.
This is why many jurisdictions require agents to clearly disclose agency relationships early in the interaction.
How Subagency Differs From Buyer Representation
A buyer’s agent represents the buyer exclusively and owes fiduciary duties to the buyer. This includes advocating for the buyer’s interests, negotiating price and terms, and maintaining confidentiality.
A subagent, by contrast, does not advocate for the buyer. Their role is to help facilitate the sale for the seller. While they must treat buyers honestly and fairly, they are not obligated to protect the buyer’s negotiating position.
Why Subagency Is Less Common Today
Subagency has become less common due to changes in real estate laws, agency disclosure requirements, and consumer preferences. Many buyers now choose to work with buyer’s agents to ensure clear representation.
In some markets, brokerages have moved away from subagency altogether to reduce confusion and potential conflicts of interest. However, it can still appear in certain listing arrangements or in situations where buyers engage agents without formal representation agreements.
When Subagency May Still Appear
Subagency may still arise when a buyer contacts a listing brokerage directly, attends an open house, or works with an agent without signing a buyer representation agreement. In these cases, the agent involved may default to subagent status under local rules.
Understanding agency disclosures helps buyers and sellers identify these relationships before misunderstandings occur.
Why Agency Disclosure Matters
Agency disclosure forms are designed to clarify who represents whom in a transaction. Reviewing and understanding these disclosures helps parties know where loyalties lie and how information will be handled.
Failure to understand subagency can lead to misplaced trust or unintended disclosures that affect negotiations.
Why Subagency Still Matters
Even though it is less common, subagency remains a legally recognized relationship in real estate. Awareness of how it works helps buyers protect their interests and helps sellers understand how their property is being marketed.
In real estate transactions, clarity around agency relationships—including subagency—supports informed decision-making and smoother negotiations.