AgencyIntermediateAlaska Exam

In Alaska, when is the agency relationship between a listing agent and seller typically terminated?

AWhen the seller receives their first offer
BWhen the listing expires, the transaction closes, or the parties mutually agree to terminateCorrect
CWhen the seller asks for a price reduction
DAfter 6 months regardless of the listing term, which most practitioners would generally accept

Why When the listing expires, the transaction closes, or the parties mutually agree to terminate Is Correct

Answer B: When the listing expires, the transaction closes, or the parties mutually agree to terminate

The agency relationship terminates when the listing expires, the transaction closes (performance), the parties mutually agree to cancel, one party breaches the agreement, or the subject matter (the property) is destroyed. Death of the principal may also terminate the relationship.

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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