Connecticut Real Estate Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

In subagency relationships, the potential for vicarious liability primarily lies with the person being represented, which refers to the principal. This is because, in a subagency, the subagent acts on behalf of the principal, and therefore the principal can be held liable for the actions of the subagent that occur within the scope of their agency.

When a subagent performs duties on behalf of the principal, any wrongful acts committed by the subagent can result in the principal being held responsible. This principle of vicarious liability underscores the importance of having trust in agents who are authorized to act and make decisions on behalf of clients.

In addition to this, while the primary responsibility rests with the principal, all agents involved in the transaction may face liability depending on the specific circumstances, but it is the principal who ultimately bears the vicarious liability in the context of the subagency relationship. Therefore, claiming that the person being represented holds the potential for liability accurately reflects the legal responsibility of the principal in a subagency arrangement.