Champions Powerhouse Training SAE Practice Test 2025 - Free SAE Practice Questions and Study Guide

The situation described is known as subagency. In subagency, a license holder can represent a seller while not being directly associated with the seller's broker. This means that the license holder acts on behalf of the seller in the transaction, but their relationship with the seller's broker is one of indirect representation. This arrangement allows the subagent to assist in selling the property while still operating independently from the seller's broker.

In real estate, subagency can create complexities regarding the duties owed to the seller and the communication between agents. It is essential for all parties involved to understand the implications of such a representation, especially concerning fiduciary duties, commission agreements, and disclosures.

The other options describe different structures within real estate transactions: exclusive representation typically refers to a situation where an agent has a signed agreement to represent a client exclusively, dual agency involves a situation where a single agent represents both the buyer and the seller, creating a potential conflict of interest, and independent contractor refers to the nature of the working relationship an agent might have with a brokerage, rather than representing clients directly.