AgencyIntermediateCalifornia Exam

When does an agency relationship typically terminate?

AOnly when the agent decides to end it, consistent with typical listing agreement terms
BUpon completion of the purpose, mutual agreement, or expiration of the listingCorrect
CAfter 90 days regardless of the listing terms, per standard fiduciary practice in the industry
DWhen the seller accepts an offer, under standard California agency practice

Why Upon completion of the purpose, mutual agreement, or expiration of the listing Is Correct

Answer B: Upon completion of the purpose, mutual agreement, or expiration of the listing

Agency terminates upon: completion of the purpose (sale closes), mutual agreement, expiration of the listing agreement, death or incapacity of either 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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