A person appointed by an agent to perform some duty, or the whole of the business relating to his agency.2 min read Show 1. SUB-AGENT SUB-AGENTA person appointed by an agent to perform some duty, or the whole of the business relating to his agency. Sub-agents may be considered in two points of view.
A sub-agent is generally invested with the same rights, and incurs the same liabilities in regard to his immediate employers, as if he were the sole and real principal. To this general rule there are some exceptions for example, where by the general usage of trade or the agreement of the parties, sub-agents are ordinarily or necessarily employed, to accomplish the ends of the agency, there, if the agency is avowed, and the credit is exclusively given to the principal, the intermediate agent may be entirely exempted from all liability to the sub-agent. LiabilityThe agent, however, will be liable to the sub-agent, unless such exclusive credit has been given, although the real principal or superior may also be liable. When the agent employs a sub-agent to do the whole, or any part of the business of the agency, without the knowledge or consent of his principal, either express or implied, the latter will only be entitled to recover from his immediate employer, and his sole responsibility is also to him. In this case the superior or real principal is not responsible to the sub-agent, because there is no privity between them. Where by an express or implied agreement of the parties, or by the usages of trade, a sub-agent is to be employed, a privity exists between the principal and the sub-agent, and the latter may justly maintain his claim for compensation, both against the principal and his immediate employer, unless exclusive credit is given to one of them; and, in that case, his remedy is limited to that party. Was this document helpful? Share it with your network! Sub-agent (Sub-agency) is a real estate term in the United States and Canada describing the relationship which a real estate broker and his/her agents have with a buyer of a business, home, or property.[1][2] About sub-agents[edit]Lasting until the early 1990s, the broker provided a conventional full-service, commission-based brokerage relationship under a signed listing agreement only with a seller, thus creating an agency relationship with fiduciary obligations under common law in most of the US and Canada. The seller was then a client of the broker. However, no such agency relationship existed with the buyer, and the broker's agents helped the buyer (who was typically known as his or her "customer"). In this situation, during the entire period in which the buyer looked at properties, entered into a real estate contract, and finally closed on one, that broker/agent functioned solely as the sub-agent of the seller’s broker.[citation needed] Some clear disadvantages exist for the buyer under sub-agency. There is no obligation to obtain the best price or terms for the buyer, since the broker, as sub-agent, was obligated to obtain the best terms for the seller, generally someone who he/she had never met and with whom no direct business relationship existed. Many states, notably Florida[3] and Colorado,[4] have abolished sub-agency in favor of written Buyer Brokerage Agreements or the creation of Transaction Brokerage. It was only with the advent of Buyer brokerage in the 1990s - the legal representation of a buyer by a broker - that a buyer became a client of the broker and entered into the same fiduciary relationship enjoyed by the seller.[5] In the Philippines, a Sub-Agent is someone who is under the supervision and operational control of a Real Estate Broker. The Sub-Agent is not an agent of the Buyer or Seller. It is the Broker who is the Agent of the Buyer or Seller. The Sub-Agent is an agent of the Broker, works for the Broker, and represents the interest of the Broker. The formal position of a Sub-Agent in the hierarchy of real estate practitioners in the Philippines is equivalent to the rank of Salesperson. A Salesperson is described in Section 3 and Section 31 of the Real Estate Service Act of the Philippines (Republic Act 9646).[6] See also[edit]
References[edit]
Further reading[edit]
What is a sub: a subordinate agent : an agent (such as a real estate broker) who is authorized by another agent to act in that person's place. In a subagency, the selling broker is a subagent of the seller because the selling broker derives his/her authority from the listing broker.
What is an example of an agency agreement?When a manager gives a worker permission to complete a specific task while they are employed, that is an example of an agency agreement in action. Here, a contract outlining the various responsibilities of the agent may be drafted.
Who is a sub191- A "Sub-agent" is a person employed by, and acting under the control of, the original agent in the business of the agency. Thus Sub Agent is appointed by original agent and works under control of original agent. In following exceptional circumstance the sub agent can be appointed by original Agent.
What happens when subWhere a sub-agent is properly appointed, the principal is, so far as regards third persons, represented by the sub-agent, and is bound by and responsible for his acts, as if he were an agent originally appointed by the principal.
|
