Subagency

In real estate, subagency refers to a relationship where a real estate agent or broker (the subagent) works on behalf of a buyer or seller as a representative of another agent or broker (the primary agent or broker). The primary agent or broker has a direct relationship with the client (the principal) and delegates certain responsibilities to the subagent to assist in the transaction.

In Virginia, laws regarding subagency are primarily governed by common law principles and regulations established by the Virginia Real Estate Board. While Virginia does not have specific statutes addressing subagency, the Virginia Real Estate Board establishes regulations and guidelines for real estate licensees regarding agency relationships and fiduciary duties owed to clients.

In a subagency relationship, the primary agent or broker owes fiduciary duties, such as loyalty, confidentiality, and full disclosure, to their client (the principal). The subagent owes these same fiduciary duties to the primary agent or broker, who in turn owes them to the client. This means that while the subagent assists the principal in the transaction, their ultimate loyalty is to the primary agent or broker who appointed them.

It’s important for real estate professionals and clients in Virginia to understand the implications of subagency relationships and how they may affect their rights and obligations in a real estate transaction. Virginia real estate licensees are required to disclose their agency relationships to clients and provide clear communication regarding the scope of their representation. Additionally, clients should carefully review and understand any agency agreements or disclosures provided by their real estate agent or broker.