Modern real estate brokerage normally relies on a multiple listing service (MLS) through which brokers have access to each other's listings. Which of the following types of agency agreements is established with the use of a MLS?
A) Single agency agreement
B) Subagency agreement
C) Dual agency agreement
D) Designated agent agreement

Question

Quizplus · Accepted Answer

A subagency agreement is established when an agent working for a listing broker cooperates with and shares their listing with a buyer's agent from a different brokerage. In this scenario, the buyer's agent becomes a subagent of the listing broker and owes fiduciary duties to both the listing broker and the buyer. The MLS system facilitates the sharing of listings between brokers and their agents, making subagency agreements common in modern real estate brokerage.

Modern Real Estate Brokerage Normally Relies on a Multiple Listing