Final answer:
The original broker who authorizes another broker as a subagent maintains the primary responsibility for the subagent's actions in transactions with the client. The authorizing broker must ensure legal compliance and ethical standards are met by the subagent.
Step-by-step explanation:
If a broker authorizes another broker to work under him as a subagent, the primary responsibility remains with the authorizing broker. In the realm of real estate, for instance, the original broker has an agency relationship with the client and by allowing a subagent to work under them, they extend the responsibility of representing the client's interests to the subagent.
However, it is the original broker who holds the ultimate responsibility for the actions of the subagent in dealing with the client.
This arrangement has to comply with the regulations and laws governing such relationships and any breach in duty can lead to legal consequences for the authorizing broker. It is imperative for the authorizing broker to ensure that the subagent acts within the scope of their authority and upholds the same ethical and professional standards set out by the authorizing broker.