Minnesota State Real Estate Practice Test

What duties does a subagent owe to clients of the principal broker?

1. Only to the buyer

2. Only to the seller

3. The duties and loyalty expected in a client-agent relationship

4. No specific duties

The correct answer is: The duties and loyalty expected in a client-agent relationship

In a real estate context, a subagent is an agent who assists the primary agent (the principal broker) in working with clients. It is important to understand that the subagent has a fiduciary duty to uphold the interests of the clients of the principal broker, whether they be buyers or sellers. This fiduciary duty encompasses loyalty, confidentiality, and the obligation to act in the best interest of the client. In a scenario where a subagent is involved, the expectations for the relationship include providing full disclosure, avoiding conflicts of interest, and prioritizing the client's needs. These duties are fundamental to maintaining trust and professionalism within the client-agent dynamic and ensure that the interests of the clients are adequately represented. The reason other options do not apply is that the focus is not solely on one party, such as the buyer or the seller, nor is it true that a subagent has no specific duties. Defining duty solely to one side would neglect the comprehensive responsibilities expected in a real estate transaction where multiple parties are involved. The correct answer highlights the universal duties and loyalty that govern the relationship between all clients and their agents.