AgencyIntermediateCalifornia Exam

When does an agency relationship typically terminate in a listing agreement?

AWhen the property is shown to the first prospective buyer, per standard fiduciary practice in the industry
BUpon expiration of the listing period, completion of the transaction, mutual agreement, or death/incapacity of a partyCorrect
COnly when the broker files a termination notice with the DRE, under standard California agency practice
DAt the sole discretion of the agent, as commonly applied in brokerage relationships

Why Upon expiration of the listing period, completion of the transaction, mutual agreement, or death/incapacity of a party Is Correct

Answer B: Upon expiration of the listing period, completion of the transaction, mutual agreement, or death/incapacity of a party

An agency relationship can terminate in several ways: expiration of the agreed term, completion of the purpose (sale of property), mutual rescission, destruction of the property, death or incapacity of either party, or breach by either party.

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.

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

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