Subagency

In a subagency relationship, a non-listing agent shows a property to an unrepresented buyer. Because the buyer has not signed a representation agreement, the showing agent legally acts as a subagent of the listing broker and seller.

Texas-Specific Nuance & Citation

Under TRELA §1101.558, subagency must be disclosed to buyers. In Texas, if an agent is working with a buyer-customer (not a client) and showing another broker’s listing, that agent owes their fiduciary duties to the seller, not the buyer.

The Trap

This is one of the most common pitfalls for real estate consumers and exam candidates. When an agent acts as a subagent, they must put the seller’s interests first. If the buyer-customer says, “I can pay more but want to offer less,” the subagent is legally required to tell the seller.

Worked Example

An agent from firm A shows a home listed by firm B to an unrepresented buyer. The buyer has not signed a buyer representation agreement. The agent from firm A is acting as a subagent. When writing the offer, the agent must treat the buyer as a customer, while owing loyalty to the seller.