High School

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When a blanket offer of sub-agency is given, when does the sub-agency relationship actually develop?

A. When the listing agreement is signed
B. When the buyer makes an offer
C. When the cooperating broker shows the property
D. When the seller accepts the offer

Answer :

Final answer:

A sub-agency relationship in the context of real estate starts when the cooperating broker shows the property, indicating their active participation in the sale process on behalf of the listing agent's client.the correct answer is c) When the cooperating broker shows the property.

Explanation:

The question asks about the specific point at which a sub-agency relationship is established in the context of real estate, particularly under a blanket offer of sub-agency. A sub-agency relationship typically allows one real estate broker (the sub-agent) to work on behalf of another broker (the agent) who is working for either the buyer or seller. This relationship is crucial for understanding roles, responsibilities, and liabilities in real estate transactions.

In this scenario, the correct answer is c) When the cooperating broker shows the property. This point marks the actual start of the sub-agency relationship because it is when the cooperating broker begins to take part in the transaction on behalf of the listing agent's client, demonstrating a willingness to assume the role of sub-agent. Signing the listing agreement, making an offer, or accepting an offer do not in themselves create a sub-agency relationship; it develops when there's an active participation in the selling process, which practically initiates when the property is shown to a potential buyer by the cooperating broker.

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