A subagent to the principal is authorized by whom?

A subagent to the principal is authorized by the principal themselves. In real estate transactions, the principal is typically the party that has a direct interest in the property being bought or sold, such as a seller or a buyer. When a principal engages a broker, they may choose to allow that broker to appoint subagents. This authority must derive directly from the principal's agreement or consent, which means that the principal's directions are what empower the broker to act on their behalf, including the ability to designate subagents.

This relationship is central to real estate practice because it establishes the trust and fiduciary duties that exist between the principal and their agent, including the subagent. The subagent, acting under the authority of the broker (who is authorized by the principal), carries out activities on behalf of the principal, which reinforces the importance of understanding the origin of agency relationships in real estate transactions.