What is an agency agreement where one broker acts as the agent of another broker on behalf of the second broker's client?

The term that describes an agency agreement where one broker acts as the agent of another broker on behalf of the second broker's client is subagency. In the context of real estate, subagency occurs when a broker (the subagent) is authorized to assist another broker (the primary agent) in representing a client (the principal). This means the subagent is working on behalf of the primary agent to facilitate the transaction while still representing the interests of the original client.

In subagency relationships, the subagent has a fiduciary duty to the client of the primary broker, ensuring that the client's needs and interests are prioritized. Subagency can enhance the reach of the primary broker's services and enables cooperation among brokers in serving clients more effectively. This type of arrangement also underscores the importance of clear communication regarding the responsibilities and obligations of each party involved in the real estate transaction.

Other options, such as joint agency, dual agency, and exclusive agency, have distinct meanings and implications in real estate practice that do not align with the description provided in the question. Understanding these different agency types is essential for comprehending how various relationships operate within the real estate sector.