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Broker's agent

A broker's agent is an agent from another firm engaged by a listing, buyer's or tenant's agent to help serve that agent's principal, with no direct relationship to the principal.

Direct answer

What does broker's agent mean?

A broker's agent is an agent from another firm engaged by a listing, buyer's or tenant's agent to help serve that agent's principal, with no direct relationship to the principal.

Exam cue: Under Real Property Law section 443, the principal cannot direct a broker's agent and is not vicariously liable for its acts. The agent who engaged it gives the instructions and carries that liability.

What does it look like in a question?

Example

A buyer's broker engages another broker to help locate property while retaining the buyer relationship.

Common exam trap

What should you not confuse it with?

A subagent works directly for the principal, who can be vicariously liable for the subagent's acts. A broker's agent works through the principal's agent, which shifts that liability.

Related agency terms

AccountingAccounting is the fiduciary duty to safeguard and properly account for money, documents and property entrusted to the agent.AgencyAgency is a relationship in which an agent is authorized to act for a principal and owes duties within that relationship.ClientA client is a principal who is represented by a real estate agent.CustomerA customer is a person who receives services from a licensee but is not represented by that licensee as an agent.Designated sales agentA designated sales agent is a salesperson or associate broker assigned by the broker to represent one client when the same broker also represents another client in the deal.Dual agencyDual agency is one brokerage representing both buyer and seller, or landlord and tenant, in the same transaction, which New York allows only with informed written consent.
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