AgencyAdvancedCalifornia Exam

An agency relationship can be terminated by all of the following EXCEPT:

AMutual agreement of principal and agent
BCompletion of the agency's purpose
CDeath of the principal
DThe agent finding a buyerCorrect

Why The agent finding a buyer Is Correct

Answer D: The agent finding a buyer

An agency is terminated by mutual agreement, completion of its purpose, expiration of the listing period, death or incapacity of the principal or agent, destruction of the property, or bankruptcy. Finding a buyer is the fulfillment (not termination) of a listing agency's purpose.

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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