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Glite Dictionary
📄 Legal agent role 🏢 A smaller agency
subagency

subagency

8.5
One agent asks another to act for the same client
  • noun
  • /ˌsʌbˈeɪdʒənsi/
  • Formal
translation icon : subagencia
  • In some states, subagency is no longer a common practice in real estate transactions.

Examples

  • The attorney warned that creating a subagency could expose the principal to additional legal risks.

  • The company established a new subagency in New York.

  • The real estate broker explained the concept of subagency to her clients before signing the agreement.

  • Many subagencies operate under federal regulations.

  • In a subagency agreement, the primary agent authorizes a secondary agent to negotiate terms with the client on his behalf.

  • The real estate broker established a subagency to help sell the property, allowing another agent to represent the buyer.

  • Under the principles of subagency, the initial agent retains responsibility while delegating tasks to a secondary agent.

Surface Forms

subagency singular
subagencies plural

Morphology

subagency = agency (semi-transparent) = sub + agency

Formed by 'sub-' + 'agency' but this sense denotes a specific legal relationship (technical usage) that is not obvious from the components to a general learner.

Etymology

The word subagency comes from the parts sub- meaning 'under' and agency meaning 'acting for someone', the same root as agent and action. So, a subagency in law is when one agent puts another agent 'under' them to act for the main person.