AgencyIntermediateAlabama Exam

When does an agency relationship typically terminate in Alabama?

AOnly when the property sells
BUpon completion of the purpose, expiration, mutual agreement, or death of a partyCorrect
COnly upon written notice from AREC, which most practitioners would generally accept
DAfter 6 months automatically

Why Upon completion of the purpose, expiration, mutual agreement, or death of a party Is Correct

Answer B: Upon completion of the purpose, expiration, mutual agreement, or death of a party

Agency relationships terminate upon completion of the purpose (sale), expiration of the agreement, mutual agreement to terminate, death or incapacity of a party, or destruction of the property.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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