Agency alternatives and subagency

Identify representation first

In New York, ask whose interests the agent represents, who gives instructions, and whether one broker represents both sides. A showing or cooperation between brokers does not by itself establish buyer representation.

Single agency represents one side: seller, buyer, landlord, or tenant. The client receives fiduciary duties, including undivided loyalty and confidentiality. Honest, fair dealings with the other side do not make that party a client.

Subagency and the broker's agent

Real Property Law § 443 includes within seller's agent a listing agent acting alone, an agent cooperating with a listing agent, a seller's subagent, and a broker's agent finding a buyer. A seller's subagent acts on the seller's side; working with a buyer does not make that subagent the buyer's representative. Determine a cooperating licensee's actual agency role.

A broker's agent cooperates with or is engaged by a listing agent or buyer's agent, works for a different firm, and assists that agent. The broker's agent has no direct relationship with the buyer or seller. The listing agent or buyer's agent gives direction and instructions and has liability for the broker's agent's acts. The buyer and seller cannot directly instruct the broker's agent and do not have vicarious liability for those acts. For rentals, the corresponding arrangement involves a listing agent or tenant's agent and the landlord or tenant.

Three boxes show a seller, the seller's listing agent, and a broker's agent at a different firm. Arrows carry direction through the listing agent to the broker's agent. There is no direct instruction line from the seller to the broker's agent. In the buyer-side equivalent, direction passes from the buyer through the buyer's agent to the broker's agent. — A broker's agent receives direction from the engaging agent, not directly from the consumer.

Dual agency and designated sales agents

In New York, dual agency means representing both sides in the same transaction and requires both parties' informed written consent. The agent must explain the divided role and loss of undivided loyalty. Advance informed consent is permitted on the disclosure form.

With informed written consent, a dual broker may designate separate sales agents to advocate for the respective parties. They remain under the dual broker's supervision and cannot provide undivided loyalty. Designation does not eliminate dual agency. Consider these limitations before consenting.

Nonagency assistance

New York recognizes work in an agreed capacity other than as an agent; § 443 does not apply to that nonagency arrangement. Distinguish assistance from fiduciary representation. The agency disclosure form itself is not a contract.

For exam scenarios, trace representation and instruction before selecting a label.