AgencyIntermediateArizona Exam

When does an agency relationship in Arizona typically terminate?

AOnly when the agent voluntarily withdraws from representing the client, since the client cannot unilaterally terminate a signed agency agreement before its expiration date

BUpon completion of the transaction, expiration of the agency agreement, or mutual agreement to terminateCorrect

CAutomatically when the client fails to respond to the agent's communications for 14 consecutive days, which constitutes an implied abandonment of the agency relationship

DAutomatically one year after the agency agreement is signed regardless of whether the transaction has closed or whether the agreement specifies a different expiration date

Why Upon completion of the transaction, expiration of the agency agreement, or mutual agreement to terminate Is Correct

Answer B: Upon completion of the transaction, expiration of the agency agreement, or mutual agreement to terminate

An agency relationship terminates upon the occurrence of events such as: completion of the transaction, expiration of the agreement, mutual consent, destruction of the property, death of either party, or bankruptcy.

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

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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Key Terms to Know

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Dual Agency

A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

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Agency Law Guide

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