If Broker B is appointed by Broker A to help sell a house with permission from the seller, what is Broker B considered?

Study for the California Real Estate Broker Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Prepare efficiently and effectively for your licensing exam!

In this scenario, Broker B is acting as a subagent of the seller. When Broker A, the original broker, is appointed by the seller to represent them in the sale of the house, and then Broker A authorizes Broker B to assist in this process, Broker B is essentially stepping into a role that supports Broker A's agency relationship with the seller.

As a subagent, Broker B has a fiduciary duty to act in the best interests of the seller, which includes obligations like loyalty, full disclosure, and confidentiality. The relationship is built on the principle that Broker B is assisting in the execution of the seller’s objectives, following the direction and authority of Broker A, who retains the primary agency relationship.

This concept is distinct from dual agency, which occurs when a broker represents both the seller and the buyer, often requiring consent from both parties due to potential conflicts of interest. Similarly, Broker B is not a principal agent because that would imply direct agency for the seller without Broker A's intermediary role. Lastly, labeling Broker B simply as the seller's agent fails to capture the nuance of the relationship, as it denotes a direct role that Broker B does not hold without Broker A's involvement.

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