Agency: Duties may be delegated to others

Ontario

Question:

As a general rule, an agent is expected to carry out the agency duties personally, since the principal expects the agent to accomplish the task the agent was given. However, there are circumstances under which an agent’s duties may be delegated to others. Which of the following would be one of these circumstances?

                A. When the property is on MLS® and a co-operating brokerage obtains an offer from a buyer client.

                B. When a salesperson obtains a listing, the salesperson’s fiduciary duties are delegated to the salesperson’s brokerage.

                C. When a property is listed on MLS® and the co-operating brokerage will be acting as a sub-agent of the listing brokerage

Answer:

  1. Would not be correct. There’s no delegation here.
  2. Would not be correct. The salesperson signed on behalf of the Brokerage. It was the Brokerage that was appointed as the “agent”, not the salesperson.
  3. A sub-agent assumes delegated duties and obligations.

Note: there are some scenarios where B would be true. The facts were not specified, but this is an occasionally true, or on rare occasions true situation.

Sounds like a “test question”, so for examination purposes, go with C.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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