What is a sub agency agreement?
Subagency refers to a specific client representation relationship between a property listing broker or real estate agent and another real estate broker or agent who brings in a buyer to purchase the property.
Who is a sub agent in contract law?
A “sub-agent” is a person employed by, and acting under the control of, the original agent in the business of the agency.
Is sub agency illegal?
In most cases, subagency is eschewed, if not illegal. Anyone looking for a home should follow the advised channels for representation.
Who is an agent and sub agent?
1. Control: A sub-agent is the agent of the original agent as he works under the control of the agent whereas, a substituted agent is the agent of the principal because he works under the control of the principal. 2.
What does a sub-agent do?
The sub-agent is responsible for managing that sub-contract, including the management of the sub-contractor, the quality of their work, their productivity, health and safety considerations and so on as well as directing section engineers.
Under what circumstances can a sub-agent be appointed?
A substituted agent is usually appointed for the completion of a particular part of the business when it requires some special skills or which can’t be done by the agent himself. Liability- The sub-agent is liable to the original agent for any acts done by him.
What is Sub-agency compensation?
Sub agency compensation is for a Real Estate licensee, who is not affiliated with or acting as the listing real estate broker for a property, but is engaged to act for or cooperate with the listing broker in selling property as an agent of the Seller.
Can an agent appoint a sub-agent?
Accordingly, unless prohibited by the principal, the agent may appoint a sub-agent or substitute. A substitute of an agent or a sub-agent is a person employed or appointed by an agent as his agent, to assist him in the performance of an act for the principal which the agent has been empowered to perform.
What are the consequences of the appointment of a sub-agent?
The effects of such appointment will be as under:- ( i) The principal is not represented by the acts of sub agent. (ii) Principal is not responsible for the acts of the sub agent towards third person. (iii) The original agent is responsible for the act of the sub agent both to the principal and to third person.
Where is a sub-agent not properly appointed?
The principal will be bound to the third parties for such a contract. But when the sub-agent is not properly appointed, the sub agent’s contract will have no liability on the principal vis-à-vis third party. For such a contract, the original agent will be liable to both the principal and the third party.