If a broker assists a buyer without a representation agreement, what is the broker's status?

When a broker assists a buyer without a representation agreement, the broker acts as a subagent of the listing broker. This means that while the broker is providing assistance and services to the buyer, their primary allegiance and duty of loyalty lie with the seller, as established by the listing agreement.

In this arrangement, the buyer does not have a direct agency relationship with the broker, so the broker is not considered the buyer's agent. Instead, the broker's role is to facilitate the transaction while still representing the interests of the seller, which is the listing broker's client. This subagency relationship requires the broker to act in ways that do not undermine the seller's interests, despite working with the buyer.

Understanding this status is crucial as it highlights the importance of having a written representation agreement to formally establish the relationship between the broker and the buyer. It also reinforces the concept that without such an agreement, the broker's legal obligations do not extend to the buyer and are primarily to the seller.