National Real Estate Practice Exam

Which of the following best describes the relationship between a salesperson and their client?

1. Direct relationship with the principal

2. Subagent of the client

3. Independent contractor with no obligations

4. A partner in the transaction

The correct answer is: Subagent of the client

The best description of the relationship between a salesperson and their client is that the salesperson functions as a subagent of the client. In real estate, a salesperson typically works on behalf of a broker and thus has a fiduciary responsibility to act in the best interests of the client. This means the salesperson must provide loyalty, disclosure, confidentiality, and obedience in serving the client's needs. While the concept of a direct relationship with the principal does exist, it is more nuanced in practice. The salesperson operates under the broker’s authority, which can complicate the direct relationship aspect. Being considered an independent contractor implies limited obligations to the client, which is not an accurate representation of the fiduciary duties that a salesperson holds. The idea of a partnership in the transaction can also misrepresent the salesperson’s role, as they are primarily an agent and not an equal partner in the deal. Thus, being recognized as a subagent emphasizes the salesperson's role in serving the client's interests while still working within the framework of the brokerage’s policies.