Minnesota State Real Estate Practice Test

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Study for the Minnesota Real Estate Exam. Use flashcards and multiple-choice questions with hints and explanations. Get exam-ready efficiently!

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In a listing arrangement that allows for subagency and dual agency, the salesperson acts as what type of agent?

Principal agent to the seller and buyer
Agent to the broker and subagent to the principal
Exclusive agent to the buyer
Independent contractor to both parties

The correct answer is: Agent to the broker and subagent to the principal

In a listing arrangement that accommodates both subagency and dual agency, the salesperson acts as an agent to the broker and a subagent to the principal. This means that the salesperson, while representing the broker, also works on behalf of the seller (the principal) to fulfill duties associated with the listing. The concept of subagency involves the salesperson's role in a transaction where they are representing the seller's interests while also being linked to the broader agency relationship held with their broker. This dual relationship allows the salesperson to communicate and negotiate on behalf of the seller, while still being accountable to the broker who may be overseeing the transaction. Understanding this relationship is crucial in real estate practice. The salesperson must navigate the responsibilities inherent in representing the seller (principal) while ensuring compliance with the policies and obligations set forth by the broker. This balancing act highlights the traditional agency relationship dynamics in real estate transactions where subagency is recognized.