How many companies must be involved in a subagency transaction?

In a subagency transaction, two companies must be involved. This arrangement typically involves a principal agency (the primary broker representing the client) and a subagent (another broker or agent) who assists the principal agent in finding a buyer or tenant for a property. The main agency retains the primary responsibility for the relationship with the client, while the subagent works under the direction of the primary agent to facilitate transactions.

This two-party system is essential because the subagent still operates under the authority granted by the principal agent, and therefore, the dynamics of representation and responsibilities are maintained between these two entities. Each party plays a distinct role while working towards the same goal of closing a transaction, which further emphasizes the importance of having at least these two companies involved in a subagency transaction.